Archive for July, 2010

Forex Margin Calculator

July 31, 2010 in forex margin calculator | Comments (2,451)

The FOREX MARGIN CALCULATOR is a basic tool which is designed to calclulate the forex margin you have to put with a broker for forex margin trading. The forex margin will depend on the base currency which means here the currency you have chosen to open your account, the chosen amount of leverage, and the size which is the total amount of currency you want to buy. Let us take a look at an example to see how the forex margin calculator works.

Let us say that the EUR/USD is trading at 1.2200, and you have USD 5,000 in a mini account. Now suppose you buy EUR 10,000 which is the size of your trade, and use a high leverage of 100. Your trading account is in USD, and so you select USD as the base currency. If you click on the calculate button you”ll get USD 122 in the margin column. This is because to buy EUR 10,000 with a leverage of 100, you have to put EUR 100 as margin which is equivalent to USD 122, given that the EUR/USD is trading at 1.2200.The additional column provides information on one pip value for all tradable currency pairs. Please note that the leverage of the account does not affect the pip value. So to calculate your forex margin, just follow these simple steps:

  1. Select your primary account currency
  2. Type your account leverage.
  3. Type the size in the trade.
  4. Click Calculate to see the results.


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DISCLAIMER:The above is provided for information purposes only.