ZAforexForex margin calculator
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Margin terms on your trading platform
- Margin (used margin)
- The deposit your broker locks up to keep a leveraged position open. Required margin = position value ÷ leverage.
- Leverage
- The ratio between position size and margin. At 1:100, R1,000 of margin controls a R100,000 position. Leverage multiplies both gains and losses.
- Equity
- Your balance plus or minus the floating profit or loss on open trades.
- Free margin
- Equity minus used margin: the money available to open new trades or absorb losses.
- Margin level
- (Equity ÷ Used margin) × 100%. At 100% you have no free margin left.
- Margin call
- A warning when the margin level falls to the broker's threshold (often 100% or 50%). You may not be able to open new trades.
- Stop-out
- The level (often 20%–50%) at which the broker automatically closes your positions, largest loss first, to protect you and itself.
High leverage (1:500 or 1:1000) means a very small move against you can trigger a stop-out. Check whether your broker offers negative balance protection.
Frequently asked questions
What is free margin in forex?
Free margin is your equity minus the margin used by open trades. It is what you have left to open new positions or absorb losses.
What causes a margin call?
Losing trades reduce equity until the margin level hits the broker's margin-call threshold.