Margin Calculator For Traders  (Forex, CFDs, Stocks & More)

With a margin calculator, you can avoid mistakes and automate the process of calculating your margin while trading. It helps you determine how much revenue you want an asset to bring you. Keep reading to learn more about our margin calculator and how it works. 

Specifications Of The Margin Calculator 

A margin calculator is used to calculate complex formulas to process margin requirements. It offers a range of features to simplify calculations and help you make informed decisions. These features include: 

• Account Size: This shows the total amount of money in your trading account. Our margin calculator uses your account size to measure your margin amount so that you don’t overstretch your trade and risk losses.    
• Position Size: Our margin calculator uses the position size to determine the margin requirements. It is the value of the currency you’re trading. For instance, let’s say you’re trading EUR/USD at 0.1 lots. Our calculator uses this value to measure how much profit or loss you can make from a trade.
• Leverage/Margin Ratio: With our margin calculator, you can adjust the leverage ratio and get the accurate margin for your account. If your leverage ratio is high, it means that you would require less margin. 
• Required Margin: Some brokers have a required margin level, which is the minimum margin you can have for a trade. At WR Trading, our online margin calculator uses the required margin to calculate how much margin is available for your trade. 
• Margin Level: This is the percentage of your account balance that is available for trading. For instance, if your margin level is 30%, our online calculator will use this percentage to calculate the margin left in your account for trading. 

How Does The Margin Calculator Work? 

A margin calculator is a tool traders use to predict how much money to use as security in case of future risks. The online margin calculator can identify different margins and measure all the possible outcomes when buying or selling. Here’s our step-by-step breakdown of how it works. 

1. Input the Cost 

To calculate the margin, you must first input the different cost variables to get the accurate margin. These inputs include: 

• Lot size: This is the full trade size, which is always calculated using lots or units.
• Currency: You must input your account’s base currency, e.g., USD or EUR.  
• Leverage Ratio: it is also important to select the leverage ratio your broker has offered you, e.g. 1:100. 
• Trading Asset: It is important to include details about the asset you’re trading with. This includes currency pairs, commodities and cryptocurrencies. Additional details include the costs of goods sold and the trading revenue. 

2. Calculate the margin 

After inputting all the necessary details, our margin calculator will analyze the data based on pre-programmed formulas and categories. Our online calculator also uses real-time data, such as updated market prices, to determine the margin.  

3. Display the result 

After processing the data, the calculator shows how much margin you need for the position. It also displays outputs such as the different margins you will need, depending on what strategy you take for the trade position. 

How To Calculate The Margin Manually 

You can find the margin using this basic formula if you don’t want to use a calculator. 

• Margin = Trade x Current Asset Price 
• Leverage

For example, let’s assume you want to trade 1 lot (100,000 units) at 1.30 USD per unit, with a leverage rate of 100:1. The first step will determine all your variables. 

• Trade = 1 lot (100,000 units)
• Asset Price = 1.30 per unit 
• Leverage = 100.1 

Now, you can calculate the margin using the formula. 

• Margin = 100,000 x 1.30 
• Leverage = 100 
• Margin = 1,300 USD 

This means that 1,300 USD is the minimum amount you need to deposit with your broker to open this trade. 

Meanwhile, in a situation where the broker states a required margin rate of, say, 2% and the trade size is 10,000 units (at 1.5 USD per unit), your formula will be:

• Margin = Trade size x Margin Rate 
• Margin = (10,000 x 1.5USD) x 0.02
• Margin = 15,000 USD x 0.02 
• Required margin = 300 USD

What Is Margin Trading? 

Margin trading allows traders to invest and trade in positions using funds that are merely a fraction of the total value of the asset. It allows you to gain massive profits but it is also a high-risk strategy. 

What Is The Margin Level? 

The margin level is a percentage that shows how much trading capacity a trader has while trading positions. It is a risk management strategy to help traders move positions and keep their accounts healthy.