How to calculate the minimum amount required to place an order?

* Trading is risky. Your capital is at risk.

To trade in financial markets, you need to know the minimum amount to open a trade. This depends on trade size, leverage, and the asset's price. We'll explain how to calculate the margin with examples.

Formula: Margin = V (lots) × Contract size per lot / Leverage

Where:

  • Margin - the required amount to open a trade.
  • V (lots) - volume in lots.
  • Contract size per lot - 100,000 units of the base currency.
  • Leverage - allows increasing position size using borrowed funds.

Example #1. Margin Calculation for Currency Pairs

  • Instrument - EURUSD;
  • Volume - 0.1 lots;
  • Contract size - 100,000 EUR;
  • Leverage - 1:100;
  • EURUSD rate - 1.35400;
  • Deposit currency - USD.

Calculation:

  • Margin = 0.1 × 100,000 EUR / 100 = 100 EUR.
  • In USD: 100 EUR × 1.35400 = 135.40 USD.

Example #2. Margin Calculation for Cross-Rate Pairs

  • Instrument - AUDCAD;
  • Volume - 0.1 lots;
  • Contract size - 100,000 AUD;
  • Leverage - 1:100;
  • AUDCAD rate - 0.99484;
  • AUDUSD rate - 0.78373;
  • Deposit currency - USD.

Calculation:

  • Margin = 0.1 × 100,000 AUD / 100 = 100 AUD.
  • In USD: 100 AUD × 0.78373 = 78.37 USD.

Example #3. Margin Calculation for Spot Metals

  • Instrument - XAUUSD;
  • Volume - 0.1 lots;
  • Contract - 100 troy oz;
  • Leverage - 1:500;
  • Price - 1332.442;
  • Deposit currency - USD.

Calculation:

  • Margin = 0.1 × 100 oz × 1332.442 / 500 = 26.65 USD.

Example #4. Margin Calculation for Cryptocurrencies

  • Instrument - XBNUSD;
  • Volume - 0.1 lots;
  • Price - 998.500;
  • Deposit currency - USD.

Calculation:

  • Margin = 0.1 × 1 × 998.500 × 50% = 49.93 USD.
Press enquires

Have more questions?

Get in touch with the friendly FXTM support team.