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How to Calculate the Margin Requirement

Modified on: 1st December 2023

Calculation:

Amount of Lots x ( Price  x Contract Size ) ÷ Leverage = Margin Requirement

Example:

1.00 x (1.10789 x 100,000 ) ÷ 500 = 221.578 USD

In this example, we are using a Leverage of 500:1

 

 

 Definitions:

 

  • Amount of Lots: 
    This is the number of Lots you intend to buy or sell.
  • Price: 
    You can get this from your Trading Platform. In the example above, the buy price of EURUSD is 1.10789. Use the Buy price for Buy Trades and Sell Price for Sell Trades.
  • Contract Size: 
    You can get this from the Specifications page for the symbol which is listed under Contract Size.
  • Leverage: 
    This is the Leverage you set when creating your trading account. If a symbol is capped at a lower leverage ratio than the leverage you selected, the lower leverage ratio will apply. E.g. BTCUSD has a maximum leverage of 100:1, therefore it can be traded with a leverage of 100:1 or lower.

 

 

 

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