 Margin is the amount of funds required in order to trade. The amount of margin required depends on position size, the market price of the currency pair, and the leverage of your account.

For example, if your account balance is \$20,000, your leverage is set to 1:1 and you want to initiate a position of 0.1 standard lots (or 10,000 units of currency) at EUR/USD at a market price of 1.45000 then minimum margin requirement would be the amount of \$14,500.00.

In the above example the minimum margin requirement is calculated by converting 10,000 Euros into 14,500 US Dollars.

Using the same example, but with a leverage setting of 1:100, the minimum margin requirement would be \$145.00.

The formula to calculate minimum margin requirement is

Minimum Margin Required = (Position Size multiplied by the Current Price) divided by Leverage

## For Example

Position Size = 1 standard lot of EUR/USD (100,000 units)
EUR/USD = 1.45000
Leverage = 50:1
Minimum Margin Required = 100,000*1.45000/50 = 2,900 USD

### Margin Call

A Margin Call is an alert generated by your trading platform when your account value (Equity) is equal to or less than a certain percentage of the Minimum Margin Requirement.