Tools / Margin
What will your broker lock up?
The margin your broker locks up to hold a position, and how the leverage behind it compares with typical prop-firm limits.
FormulaMargin = (Units × Price) ÷ Leverage
The formula above is exactly what this calculator runs, in full view. Never trust a number blindly, verify it: check it against your own broker's or prop firm's figures before you rely on it. You are responsible for every value you enter here; the result is for reference and educational purposes only, never financial advice, and Traderista accepts no responsibility for the financial decisions you make from it.
One lot is 100 ounces.
The position's value in USD depends on XAU/USD's price. Take today's from your broker.
Enter 100 for 1:100.
Figures assume a USD-denominated account.
These thresholds are based on widely-accepted prop-trading community norms. They are not investment advice.
Same calculator, three outcomes
Reading the calculator in three steps
Pick your instrument and position size. Sets the contract size, gold's lot is 100 ounces, most currency pairs are 100,000 units.
Enter today's price, where the instrument needs one. Only instruments quoted in USD need this; the calculator hides the field otherwise.
Set your leverage. The panel tints amber past 1:100 and red past 1:200, then shows the dollar margin your broker would lock up.
Leverage vs. what the calculator shows
| Leverage | State | What it means |
|---|---|---|
| ≤ 1:100 | Safe | Within most prop-firm leverage caps |
| 1:100 – 1:200 | Caution | Above the common cap, not yet extreme |
| > 1:200 | High risk | A small adverse move can erase the margin |
What keeps margin use honest, and what breaks it
- Checking the required margin against free account equity before opening, not after.
- Treating low leverage as spare room for adverse moves, not as unused capacity to size up.
- Re-checking margin when position size changes, since it scales with the notional, not just the lots.
- Maxing out available leverage because the broker allows it.
- Confusing margin (what's locked up) with risk (what can actually be lost).
- Opening a position without knowing how close it sits to a margin call.
Frequently asked questions
What is a forex margin calculator?
A tool that works out how much of your account balance a broker locks up (the margin) to open a leveraged position, from the position's notional value and the leverage you're using.
What leverage do prop firms typically allow?
This calculator turns amber past 1:100 and red past 1:200, a common prop-firm ceiling. Individual firms set their own limits, this is a general convention, not a rule this calculator enforces.
Is margin the same as risk?
No. Margin is what your broker holds while the position is open. Risk is what you could actually lose, which depends on your stop-loss distance, not your leverage.
Why does Margin ask for a price that Pip Value doesn't?
The two calculators need a price on opposite sets of instruments. When USD is the quote currency (XAU/USD, EUR/USD), Margin needs today's price to convert the position into dollars; Pip Value doesn't, because a pip there is already in USD.
Use this alongside
Traderista provides educational information and historical data only. Nothing here is financial advice. Trading involves substantial risk of loss. Past performance does not indicate future results.