Estimate forex notional exposure, required margin, effective leverage, and remaining free equity from lot size, price, leverage, and account equity.
STEP-BY-STEP
How to use this tool
- Enter the position size in standard lots.
- Confirm the units per standard lot and current pair price.
- Enter a quote-to-account conversion rate when the quote currency differs from the account currency.
- Enter the symbol’s applicable leverage—not merely the account’s advertised maximum.
- Enter current account equity and margin already committed.
- Review required margin, free equity, effective leverage, and margin level.
- Verify the broker’s exact margin calculation before entering a simulated or outside-platform order.
WORKED EXAMPLE
See the calculation in context
One 100,000-unit lot at 1.1000 has $110,000 of notional exposure when conversion is 1. At 50:1 leverage, estimated required margin is $2,200. On $10,000 equity with no other used margin, estimated free equity becomes $7,800.
Calculation method
Account-currency notional exposure = standard lots × contract units × pair price × quote-to-account conversion rate. Required margin = notional exposure ÷ leverage. Free equity estimate = account equity − existing margin − required margin.
AVOID THESE ERRORS
Common mistakes
- Treating required margin as maximum loss
- Using advertised account leverage when the symbol has a different cap
- Leaving conversion at 1 for a different account currency
- Using balance when floating P&L has reduced equity
- Ignoring margin already used by other positions
- Assuming a stop guarantees release at the planned price
FREQUENTLY ASKED
Questions and answers
Is margin the same as risk?
No. Margin is collateral supporting exposure. Planned loss depends on position size, stop distance, pip value, and execution.
Why does leverage reduce required margin?
Higher leverage requires less collateral for the same notional exposure, but it does not make the price movement less risky.
Why might the broker require more margin?
Symbol tiers, volatility, concentration, weekends, news, account type, and broker policy can change the requirement.