Forex Margin Calculator – Money Needed to Open Order

Forex Margin Calculator is a Forex calculator that calculates the amount of money on your trading account that needs to be available to open a trade.

That means if you want to open a new order with margin $1000 you need to have more than $1000 to open a trade on your trading account.

Read more: Margin in Forex

Forex margin calculator is a tool which you can use to calculate how much money you need to have to open an order. Without knowing the required margin you will not be able to open a new order.

This article will explain how to use a margin calculator and why it is important in trading.

Forex Margin Calculator

Forex margin calculator use five variables to calculate deposit amount to open a trade:

• Instrument or currency pair
• Deposit currency
• Leverage
• Lot size
• Currency pair price

With these variables the margin calculator calculates the value of a margin in deposit currency you have on your trading platform. Deposit currency is the currency you have invested your money for trading.

When you change any of these variables the final result will change. The calculator requires market price for certain symbols and leverage and lot size.

How to Calculate Margin?

Margin is calculated by this formula:

Required Margin = Lot size / Leverage x Currency Exchange Rate

Here is an example how Forex margin calculator works:

• Volume or Lot size: 1 (One Standard Lot = 100,000 Units)
• Leverage: 100
• Account Base Currency: USD
• Currency Pair: EUR/USD
• Exchange Rate: 1.07785

Required margin = 100,000 / 100 x 1.07785
Required margin = $1,077.85 USD

How to Use Forex Margin Calculator

In order to use Forex margin calculator enter these values in the fields that are available:

• Instrument or currency pair
• Deposit currency
• Leverage
• Lot size
• Currency pair price

You have an option to change the leverage which is set to 100:1. If you want to change leverage simply start typing any number.

For example if you start typing 50 and leave it like that the calculator will put 50:1 leverage.

Lots (trade size) options can be switched to units so you can type how much units of base currency you want to have. For example if you change Lots to Units you can type 100,000 which is equal to 1 lot.

Conclusion

Forex margin calculator gives you a good estimation of how much money you need to have to open a trade.

But, for deeper understanding it is better to understand what margin is in detail. For that I suggest you read the article that will give you all you need to know about margin in Forex trading.

Read more: Margin in Forex