Margin calculator
How much margin does this position lock up — and how far is stop-out?
Leverage decides how little the broker asks you to put down. It does not decide how much you can lose. This works out the margin, what is left free, and how far price has to move against you to hit margin call and stop-out.
Next Size the trade from the stop instead →
Reading the number honestly
- Margin is a deposit the broker holds, not a cost. But once free margin runs out, the broker closes positions for you at the stop-out level — usually at the worst possible moment.
- Effective leverage is the number that matters: position value ÷ equity. 1:500 on offer means nothing if you use 1:5 of it; 1:30 fully used is dangerous.
- Call and stop-out levels vary by broker and regulator. 100% and 50% are common defaults — check the specification for yours.
- One position, nothing else open. Every additional trade takes free margin and pulls stop-out closer than this shows.
Questions
Is higher leverage riskier?
Not by itself. Risk comes from position size relative to equity. High leverage only lets you take a size that is too big; it does not make you. Use the position-size calculator for the size and this one to confirm the margin fits.
What happens at stop-out?
When margin level (equity ÷ margin used) falls to the stop-out level, the platform closes your largest losing position automatically, then the next, until the level recovers. No warning beyond the margin call, and no choice about which trade goes.
Why does margin change when the price moves?
Margin is a percentage of position value, and position value is lots × contract size × price. On most pairs the effect is small; on gold and indices, where prices move a lot, required margin can shift noticeably within a day.
