What margin is
Margin is the deposit your broker sets aside when you open a leveraged position. It is not a fee; you get it back when the trade closes. With 100:1 leverage you need 1% of the position value as margin, with 30:1 about 3.33%.
Margin = Lot size × Contract size × Price ÷ Leverage
The result is converted into your account currency at the live exchange rate.
Example
One standard lot of EUR/USD is 100,000 euros. At a price of 1.0850 that position is worth $108,500. With 1:100 leverage the margin is $1,085. With 1:30, the maximum many regulators allow retail clients on major pairs, it is about $3,617.
One lot of gold is usually 100 ounces. At $2,400 an ounce the position is worth $240,000, so at 1:20 leverage the margin is $12,000.
Margin level and margin calls
Your broker compares your equity with the margin in use. When the margin level (equity ÷ used margin × 100) falls to the broker's margin call level, often 100%, you cannot open new trades. At the stop-out level, often 50% or lower, positions are closed automatically. Keeping used margin small compared with your balance gives your trades room to breathe.
What one pip is worth on any pair and lot size. Free, no sign-up.
Open the pip value calculatorFrequently asked questions
Does higher leverage mean higher risk?
Leverage only changes the margin, not the profit or loss per pip. The danger is that high leverage lets you open positions far too large for your account. Size every trade from your stop loss and risk, not from the leverage available.
Why does my broker show a different margin?
Brokers can use different contract sizes, leverage per instrument and higher margin around news or weekends. Always check the platform's own margin figure before trading.
Results are estimates for education and planning. Broker contract sizes, fees and margin rules differ, so always confirm on your platform before you trade.