Forex margin formula
Required margin = converted notional position value ÷ leverage. Notional value begins with lots multiplied by contract size and then uses the relevant price conversion for the account currency.
Margin calculation example
One standard lot represents 100,000 base-currency units. At a conversion price of 1.0850, the notional value is $108,500. At 100:1 leverage, the simplified margin estimate is $1,085.
Margin versus position risk
A broker may allow a position with a relatively small margin deposit, but the market exposure remains much larger. Use a separate Forex risk calculator to size the position from the stop-loss distance.
Margin call and liquidation risk
Usable margin falls when open positions lose value. Brokers apply their own margin-call and stop-out thresholds, which this simplified calculator cannot predict.