Calculator · margin and leverage
Forex margin calculator
Enter the value of a position and pick a leverage cap to see the margin it ties up. At the 1:30 retail cap on major pairs, a $10,000 position needs $333.33.
- 19 Oct 2026latest broker data check
Low Spread Brokers does not give personal investment advice.
Margin and leverage calculator
Account in US dollars. Leverage options are the retail caps set by the FCA, ESMA and ASIC for each asset class.
Position value is in your account currency: lots × 100,000 × price. One lot of EUR/USD at 1.1000 is $110,000.00 on a USD account. Brokers can ask for more margin than the cap; check your broker’s margin table.
Result
Margin = position value ÷ leverage
Key takeaways
- 1Margin = position value ÷ leverage: $10,000.00 at 1:30 needs $333.33.
- 2One standard lot of EUR/USD at 1.1000 is $110,000.00; at 1:30 it ties up $3,666.67.
- 3Margin is a deposit, not a fee: the $3,666.67 on one lot is released when you close; costs come from the spread, commission and swaps.
- 4Under FCA and ESMA rules a retail position is closed when equity falls to 50% of the margin required.
Retail leverage caps in the United Kingdom
The most leverage a UK retail client can be given when opening a position. ESMA rules in the EU and ASIC rules in Australia set the same 1:30 on major pairs; Singapore’s MAS sets 1:20.
- FX majors1:30
- FX non-majors, gold, major indices1:20
- Commodities (ex gold), non-major indices1:10
- Individual equities1:5
- Cryptoassetsbanned (crypto derivatives may not be sold to retail clients)
Source: FCA PS19/18 and PS20/10, compiled in our country reference and not yet re-verified; see the sources on this page.
How the margin calculator works
Required margin = position value ÷ leverage. Position value is the size of the trade in your account currency: lots × 100,000 units × the price, converted to your account currency if the pair is not quoted in it.
Leverage and margin are two views of one number: 1:30 leverage is a margin rate of 3.33%, 1:20 is 5%, 1:5 is 20%.
| Leverage | Applies to | Margin required |
|---|---|---|
| 1:30 | FX majors (FCA, ESMA, ASIC) | $333.33 |
| 1:20 | minor FX, gold, major indices; FX majors under MAS | $500.00 |
| 1:10 | other commodities, minor indices | $1,000.00 |
| 1:5 | individual shares | $2,000.00 |
| 1:2 | crypto (ESMA, ASIC; banned for UK retail) | $5,000.00 |
Using it as a leverage calculator
Effective leverage = total position value ÷ account equity. With $5,000.00 in the account and one lot of EUR/USD open ($110,000.00 at 1.1000), effective leverage is 22:1 even though the cap is 1:30. The cap limits the margin, not how large your exposure can grow against your balance.
A 1% move on that lot is $1,100.00, or 22% of the $5,000.00 balance.
Margin calls and close-out
Your broker compares equity (balance plus open profit or loss) with the margin your positions need. Under FCA PS19/18 and the ESMA measures, a retail account must be closed out position by position once equity falls to 50% of the margin required.
In the one-lot example, $3,666.67 of margin means close-out starts when equity drops to about $1,833.33.
- Leave free margin above the minimum: on one lot a 50-pip gap at the open is $500, more than the $1,833.33 buffer above close-out in the example.
- Check which company holds your account: the 1:30 cap and 50% close-out come from FCA, ESMA and ASIC rules, which offshore companies are not bound by.
- Negative balance protection for retail clients stops losses at the account balance under FCA and ESMA rules.
Brokers with a Tier 1 company and MetaTrader
Why this order: brokers with at least one Tier 1 company that offer both MT4 and MT5, whose terminals show the margin and margin level of every open position; lowest published minimum deposit first, ties broken by the overall score. Ranked from our data on 5 brokers, updated 19 Oct 2026.
- 1OANDA8.1/10 · Minimum deposit $0 · 0.0 pipsVisit brokerUnpaid link
76.6% of retail investor accounts lose money when trading CFDs with this provider (OANDA Europe Limited).
- 2IC Markets8.1/10 · Minimum deposit $0 · 0.1 pipsVisit brokerUnpaid link
73.46% of retail investor accounts lose money when trading CFDs with this provider (IC Markets (EU) Ltd).
- 3IG8.0/10 · Minimum deposit £1 · 0.6 pipsVisit brokerUnpaid link
70% of retail investor accounts lose money when trading CFDs with this provider (IG Markets Ltd / IG Index Ltd (UK)).
Risk warning:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.
Low Spread Brokers does not give personal investment advice.
FAQ
Margin and leverage: questions
Short answers to the questions people ask about this calculation. The arithmetic is exact; exchange rates in the examples are round numbers, not market quotes.
Ask a questionWe cannot give personal investment advice.
1How do I calculate margin in forex?
Divide the position value by the leverage. One lot of EUR/USD at 1.1000 is $110,000.00; at 1:30 the margin is $3,666.67, at 1:20 it would be $5,500.00.
Leverage caps: FCA, ESMA and ASIC rules as compiled in our country reference
2What leverage can a retail trader get?
1:30 on major currency pairs from FCA, ESMA and ASIC regulated companies, 1:20 on other pairs, gold and major indices, 1:10 on other commodities, 1:5 on shares. Crypto CFDs are capped at 1:2 in the EU and Australia and banned for UK retail clients. Singapore caps majors at 1:20.
Leverage caps: FCA, ESMA and ASIC rules as compiled in our country reference
3Does higher leverage mean a bigger loss?
Not on a given position size: a 10-pip move against one lot of EUR/USD costs $100 at 1:30 and at 1:10 alike. What higher leverage changes is how large a position your margin allows, and a larger position loses more per pip.
Leverage caps: FCA, ESMA and ASIC rules as compiled in our country reference
4Why does my broker ask for more margin than the calculator shows?
1:30 is a ceiling, not a promise: a broker may set 1:20 or lower on some instruments, account types or around volatile events. Your platform’s margin figure is the one that applies.
Leverage caps: FCA, ESMA and ASIC rules as compiled in our country reference
5Is the margin in the calculator in US dollars?
Yes. For a pair not quoted in your account currency, convert the position value first: 1 lot of EUR/GBP is EUR 100,000, which you convert to dollars at the EUR/USD rate before dividing by the leverage.
Leverage caps: FCA, ESMA and ASIC rules as compiled in our country reference
Sources
Regulators’ documents behind the leverage caps and close-out rule on this page.
- FCA PS19/18: restrictions on CFDs for retail clientsChecked on 20 Oct 2026
- ESMA: prohibition of binary options and restriction of CFDs for retail investorsChecked on 20 Oct 2026
- ASIC: search ASIC’s registersChecked on 20 Oct 2026