Required Margin
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Free Margin
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Leverage
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When Should You Use a Margin Calculator?
Use this calculator before opening a leveraged position:
• Checking if you have enough margin for a trade
• Understanding how much leverage you are using
• Planning position sizes within your margin limits
• Avoiding margin calls by knowing your free margin
How It Works
1
Enter Position
Input the total value of the position you want to open.
2
Set Requirement
Enter your broker's margin requirement (e.g., 50% for US stocks).
3
See Results
Get required margin, free margin remaining, and effective leverage.
Example
Scenario: Buy $20,000 of stock with 50% margin on a $15,000 account.
Calculation: Required margin = $10,000. Free margin = $5,000. Leverage = 1.33x.
Result: A 10% move against you = $2,000 loss (13.3% of account).
Frequently Asked Questions
Margin is the collateral you must deposit to open a leveraged position. It allows you to control a larger position than your account balance would normally allow.
A margin call occurs when your account equity falls below the maintenance margin requirement. Your broker will ask you to deposit more funds or close positions.
A 50% margin requirement means you need to put up half the position value from your own funds. This gives you 2:1 leverage.
Yes. Leverage amplifies both gains and losses. A 10% move against you with 5:1 leverage means a 50% loss on your margin. Always use proper risk management.
Regulation T requires 50% initial margin for stocks. Day traders with pattern day trader status get 4:1 intraday leverage. Maintenance margin is typically 25%.
Related Tools
Quick Reference Table
| Position | Leverage | Margin Required | % of $10k Account |
|---|---|---|---|
| $10,000 | 2:1 | $5,000 | 50% |
| $10,000 | 5:1 | $2,000 | 20% |
| $10,000 | 10:1 | $1,000 | 10% |
| $50,000 | 20:1 | $2,500 | 25% |
| $100,000 | 50:1 | $2,000 | 20% |
US stock brokers allow up to 2:1 margin for overnight positions (Reg T). Forex brokers offer up to 50:1 leverage in the US.