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Margin Calculator

Margin (the deposit your broker holds while a position stays open) isn't a fee you pay. It's money set aside, and you get it back the moment you close the trade. Enter your lot size, price, and leverage to see exactly how much of your balance one position locks up, in USD and THB.

  • Free
  • No data stored
  • Formula shown

Enter 500 for 1:500.

Optional. Add your balance to see margin as a share of it.

Converts the result into THB.

Margin required

48.00USD

1,567.68 THB

Notional value (USD)
24,000.00
Notional value (THB)
783,840.00
Margin as % of notional
0.20
Units
10
Leverage
1:500
Instrument
Gold (XAU/USD)
Worked examples

Try it with real numbers

Example 1 — XAU/USD, 0.10 lot at 1:500

Instrument
Gold (XAU/USD)
Price
$2,400.00
Lots
0.10
Leverage
1:500
Balance
$2,000.00

Notional value = $2,400.00 × 100 × 0.10 = $24,000.00. Margin required = $24,000.00 ÷ 500 = $48.00, or 2.40% of a $2,000.00 balance, leaving $1,952.00 free.

Example 2 — EUR/USD, 1 lot at 1:100

Instrument
EUR/USD
Price
1.0850
Lots
1.0
Leverage
1:100

Notional value = 1.0850 × 100,000 × 1 = $108,500.00. Margin required = $108,500.00 ÷ 100 = $1,085.00.

The formula

How to calculate margin

Notional value (USD) = price × contract size × lots
For USD-based pairs (USD/JPY, USD/CHF, USD/CAD, USD/THB), price isn't used: notional value = contract size × lots
Margin required (USD) = notional value ÷ leverage
Margin as % of notional = 100 ÷ leverage

What each variable means:

  • Price — The current market price of the instrument, in its quote currency. This field is hidden for pairs where the US dollar is the base currency, since notional value doesn't need a price for those.
  • Contract size — The amount of the underlying asset in one standard lot: 100 ounces for XAU/USD, 5,000 ounces for XAG/USD, and 100,000 units of the base currency for most forex pairs.
  • Leverage — The ratio your broker sets between position size and required margin. Entering 500 means 1:500.
  • Notional value — The full size of the position in USD, before leverage reduces how much cash it actually ties up.
  • Margin required — The share of the notional value your broker holds as collateral while the position stays open.

For a 0.10 lot XAU/USD position at $2,400, notional value is $2,400 × 100 × 0.10 = $24,000.00. At 1:500 leverage, the margin required is $24,000.00 ÷ 500 = $48.00, a small fraction of the position's full value.

What margin actually is

Margin is the money your broker sets aside as collateral the moment you open a position, not a cost that leaves your account. It's held for as long as the trade is open and released back to your free balance when you close it. What you pay for a trade comes from the spread, swap, or commission your broker charges, none of which show up in the margin figure at all.

Why free margin isn't the same as safe margin

Free margin is simply your balance minus the margin already in use, and a large free margin figure can make a position feel safer than it is. The margin this tool calculates only tells you how much cash a position ties up. It says nothing about how much you stand to lose if the price moves against you. That number depends on your lot size and stop loss distance, which the Lot Size Calculator is built to size correctly, not on how much margin happens to be free.

What a margin call and a stop-out actually do

A margin call is a warning your broker sends when your account equity gets close to the margin you're using, asking you to add funds or reduce your position. A stop-out goes further: it's an automatic, forced close of one or more open positions once equity falls to a set percentage of the margin used, commonly somewhere between 20% and 50% depending on the broker. Neither event is optional once triggered, which is why the margin-as-percent-of-balance figure above is worth watching, not just the account balance on its own.

FAQ

Frequently asked questions

Is margin money I lose when I open a position

No. Margin is held, not spent. It sits aside as collateral while the trade is open and returns to your free balance the moment you close it. Your actual profit or loss comes from the price move itself, not from the margin figure.

What actually triggers a margin call

A margin call happens when losses on your open positions push your account equity down close to the margin you're using. It's a warning, not an automatic action, and it usually gives you the chance to add funds or close part of the position before anything is forced shut.

What's the difference between a margin call and a stop-out

A margin call is a notice. A stop-out is the broker acting on your behalf, automatically closing positions once equity falls to a set percentage of the margin in use. By the time a stop-out happens, the choice to act has already passed to the broker.

Why does my free margin change while a trade is still open

Free margin moves with the unrealized profit or loss on your open positions, since that gain or loss adjusts your account equity in real time. A losing trade shrinks free margin even though the margin held for that position hasn't changed.

Do these numbers match my broker exactly?

They should be close, but not guaranteed to be exact. Some brokers round differently, apply a markup to the contract size, or use tiered margin requirements for larger positions. Treat this as a planning estimate and confirm the figure your platform shows before you trade.

Next steps

Related tools and lessons

Leverage Calculator

Work out the leverage a position actually uses, from its notional value and your account balance.

Example 0.5 lot XAU/USD @ $2,400 on $2,000 = 1:60

Open tool

Lot Size Calculator

Work out the right lot size from your account balance and the risk you accept per trade.

Example $1,000 account, 2% risk, SL $2.00 = 0.10 lot

Open tool

Learn more about margin and leverage in Chapter 04: Trading XAU/USD on a Forex Platform → · See the full curriculum →