Calculate required margin, free margin and margin level for any leveraged position in forex, CFDs or stocks.
Required Margin = Position Value ÷ Leverage. This is the amount locked by your broker as collateral.
Free Margin = Account Balance − Required Margin. This is available to open new positions or absorb losses.
Margin Level = (Account Balance ÷ Required Margin) × 100%. Most brokers issue a margin call below 100% and stop out below 50%.
When your margin level drops below your broker's margin call level (typically 100%), you must deposit more funds or close positions. If it reaches the stop-out level (typically 50%), the broker automatically closes your largest losing position.
Higher leverage amplifies both profits and losses. Professional traders rarely use full leverage — they size positions based on risk percentage of account, not maximum available leverage.