Brokers lock up margin every time you open a position. Enter your pair, lot size, leverage, and balance to see exactly how much of your account is required and how much breathing room you have before margin call.
Required margin is the portion of your account balance your broker locks up as collateral to open a leveraged position. The calculator first converts your position size into notional value — lots × contract size, priced in your account currency — then divides that notional value by your leverage ratio to get the margin required.
Free margin is simply your account balance minus the required margin — the capital still available to absorb floating losses or open new positions. Margin level expresses your balance as a percentage of required margin (Balance ÷ Required Margin × 100); most brokers issue margin call warnings around 100% and force-close positions (stop-out) somewhere between 20% and 50%, depending on the broker.
Higher leverage lowers the required margin for the same position size, which is why leverage is often described as a double-edged tool: it frees up capital, but it also means a smaller adverse price move can erode your margin level faster.
Worked example: opening 1 standard lot of EUR/USD (100,000 units, notional value ≈ $108,500 at a 1.085 EUR/USD rate) at 100:1 leverage requires about $1,085 in margin. On a $10,000 account, that leaves roughly $8,915 in free margin and a margin level near 922% — well above the 100% level most brokers use as a margin-call warning threshold.
Margin is the portion of your account balance your broker sets aside as collateral when you open a leveraged position. It isn't a fee — it's locked funds you get back when the position closes, assuming the account stays solvent.
Required margin equals the notional value of your position (lot size × contract size, converted to your account currency) divided by your leverage. Higher leverage reduces the margin required for the same trade size.
Margin level is your account balance expressed as a percentage of the margin currently in use. It's the number brokers watch to decide when to send a margin call warning and, if it falls further, to automatically close positions (stop-out) to protect the account from going negative.
Leverage is the ratio your broker allows you to trade beyond your own capital (e.g. 100:1). Margin is the actual dollar amount locked up as a result of using that leverage on a specific position size.
There's no universal number, but keeping a healthy buffer of free margin — well above 100% margin level even after accounting for a normal adverse move — reduces the risk of a margin call forcing you out of a position at the worst time.