Margin calculator
Required margin
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How margin works
Required margin = position value ÷ leverage
The calculator uses currency pairs. At 30:1, a $108,000 position needs $3,600. The same principle applies to a margin account for shares: in the US, Regulation T generally lets investors borrow up to 50% of the purchase price of eligible shares, which is 2:1.
Why it matters for investors
If you buy $20,000 of shares with $10,000 of your own money and $10,000 borrowed, a 20% fall costs $4,000, or 40% of your money, plus interest on the loan. If the value falls far enough, the broker issues a margin call and may sell your holdings at the worst moment. Unleveraged investors can wait for markets to recover; leveraged ones may not get the chance.