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How do I calculate the margin needed for my trade?

Margin is the amount of funds required to open and maintain a trading position.
The margin requirement depends on the instrument, contract size, position size, market price, leverage, and applicable margin settings. You can estimate the required margin before placing a trade or check the calculated amount directly in the MT4/MT5 order window.

What information do I need to calculate margin

Before calculating the margin requirement, make sure you have the following information:
  • Contract Size – Available in the instrument's Specification window.
  • Lot Size – The size of the position you intend to open.
  • Current Market Price – The latest market price of the instrument.
  • Account Leverage – Available in the Accounts section of the Client Portal.

Which margin calculation formula should I use

The applicable margin calculation method depends on the instrument's specifications. The following calculation modes may apply:
Forex Mode
Margin = Contract Size × Lots × Margin Percentage ÷ Account Leverage
CFD-Leverage Mode
Margin = Market Price × Contract Size × Lots × Margin Percentage ÷ Account Leverage
CFD Mode
Margin = Market Price × Contract Size × Lots × Margin Percentage
CFD Margin Initial
Margin = Initial Margin × Lots × Margin Percentage
Note: The calculation method varies by instrument. Always refer to the instrument's current specifications rather than assuming that one formula applies to all products.

Does my account leverage apply to every product

No. Account leverage does not determine the margin requirement for every instrument.
  • Some instruments use product-specific margin settings.
  • Temporary or Dynamic Leverage conditions may change the applicable leverage.
  • Check the instrument’s specifications and any applicable leverage notifications before calculating.

How is margin converted into my account currency

If the calculated margin is in a different currency from your account currency, it is converted using the applicable exchange rate.
For example:
  • Your calculated margin is in GBP.
  • Your trading account is denominated in USD.
  • The GBP amount is converted into USD.
Exchange rate changes may affect the final margin requirement.
 

Why the Margin Requirement Can Change

Margin requirements may change because of:
  • Market price movements, where the formula uses market price.
  • Changes in applicable leverage or margin settings.
  • Currency conversion movements.
  • Temporary or Dynamic Leverage conditions.
  • Applicable risk controls.
The margin required to maintain a position may therefore differ from the amount required when it was opened.
 

How do I check an instrument’s margin specifications in MT4/MT5

Before opening a position, you can check the instrument's current specifications in MT4/MT5:
  1. Open Market Watch.
  2. Right-click the instrument you wish to trade.
  3. Select “Specification”.
  4. Review the relevant details, including:
    1. Contract Size
    2. Margin Calculation Method
    3. Margin Percentage
    4. Other applicable trading specifications
Always use the latest product specifications when estimating your margin requirement.
 

What is the difference between Margin and Free Margin

  • Margin: Funds allocated to support your open positions.
  • Free Margin: Account equity remaining after used margin is deducted.
Free Margin = Equity − Used Margin.
Free margin indicates the funds available to support additional positions and account fluctuations.
 

Is margin the maximum amount I can lose

No.
  • Margin is the amount required to open or maintain a position.
  • It does not represent the maximum potential loss.
  • Trading losses may exceed the margin allocated to a position.

What should I check before placing a trade

  • Use the latest instrument specifications.
  • Confirm the applicable leverage and margin calculation mode.
  • Allow for currency conversion where required.
  • Check your available free margin.
  • Review any temporary margin or Dynamic Leverage conditions.
A manual calculation is an estimate. The trading platform determines the applicable requirement using its current settings.
 

Risk Warning

Trading Contracts for Difference ("CFDs") and other leveraged financial derivatives involve a high degree of risk and may not be suitable for all investors. Leverage can magnify both gains and losses, and you may lose all of your invested capital. You should ensure that you fully understand the risks involved before trading.
 
The information provided on this website is for general information purposes only and does not constitute investment advice, a recommendation or an offer or solicitation to buy or sell any financial instrument.

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