Understanding how to calculate margin is essential for managing your capital and maintaining open positions. Margin is the amount of collateral required by your broker to open a trade, typically expressed as a percentage of the total trade value.

Formula for Margin Calculation

Margin= Lot size * Market Price ÷ Leverage​

Where:

• Lot Size = Volume * Contract Size (the number of units being traded).
• Market Price: The current price at which the instrument is being traded.
• Leverage: The leverage ratio offered by your broker (e.g., 1:100, 1:500, 1:1000).

Leverage at Eurotrader & Its Impact on Margin

At Eurotrader, we offer high-leverage options, which can significantly reduce the margin required for a trade:

🔹Up to 1:500 leverage for global clients.
🔹Up to 1:30 leverage for European retail clients, in compliance with regulatory guidelines.
🔹Professional clients in Europe can apply for increased leverage, up to 1:500, allowing for lower margin requirements.

To simplify margin calculation, you can use Eurotrader's all-in-one trading calculator, available on our website.

Need more details? Our support team is always here to help.

Open an account with Eurotrader today!