ReturnLab
Margin Calculator
How much of your own capital a leveraged position actually ties up.
Margin required to open a $10,000 position
Required margin is the position size divided by the leverage ratio. Each row is the same $10,000 position opened at a different leverage.
| Leverage | Margin required | Margin as % of position | Move that wipes out the margin |
|---|---|---|---|
| 1:1 | $10,000.00 | 100.00% | -100% |
| 2:1 | $5,000.00 | 50.00% | -50% |
| 5:1 | $2,000.00 | 20.00% | -20% |
| 10:1 | $1,000.00 | 10.00% | -10% |
| 20:1 | $500.00 | 5.00% | -5% |
| 30:1 | $333.33 | 3.33% | -3.33% |
| 50:1 | $200.00 | 2.00% | -2.00% |
| 100:1 | $100.00 | 1.00% | -1.00% |
The last column is the point of the table and follows directly from the third: at 50:1, a 2% move against the position consumes the entire margin, and a broker will typically issue a margin call or close the position before that. Leverage multiplies losses exactly as it multiplies gains, and it does not change the odds - it only shortens the time you can be wrong. Available leverage is capped by regulation in many jurisdictions and differs by instrument and by broker. Nothing here is a recommendation to use leverage, and margin trading can cost more than the amount deposited.
Margin isn't a fee
Required margin is collateral you set aside, not money you spend — it's returned when you close the position (assuming you haven't lost more than that amount). It's held to cover potential losses on the borrowed portion.
Higher leverage cuts both ways
Higher leverage lowers the margin needed to open a position, but it also means a smaller adverse price move can wipe out that margin — leverage amplifies percentage gains and losses equally.
What triggers a margin call
When your equity drops below the maintenance margin (typically 25–30% for stocks, lower for forex), your broker issues a margin call. You must deposit more funds or liquidate positions immediately. If you don't act, the broker can force-sell your positions at market price — often at the worst possible moment.
Frequently asked questions
How much margin do I need to trade?
Margin = Position Size ÷ Leverage. For a $10,000 stock position at 2:1 leverage, you need $5,000 margin. Forex at 50:1 leverage requires only $200 margin for a $10,000 position. Regulation T requires 50% initial margin for US equities (2:1 max leverage).
What is the difference between margin and leverage?
Margin is the dollar amount of your own capital required. Leverage is the multiplier — how much total position size your margin supports. $1,000 margin at 10:1 leverage controls a $10,000 position. They're inverses: Margin % = 1 ÷ Leverage Ratio.
Can I lose more than my margin?
Yes. If your position moves against you beyond your margin amount, you owe the difference. A $10,000 position at 10:1 leverage ($1,000 margin) that drops 15% loses $1,500 — $500 more than your margin. Some brokers offer negative balance protection, but it's not universal.
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Last updated: September 6, 2026