CAPITAL EXPOSURE TOOL
Forex Leverage Calculator
Calculate your exact required margin deposit, total notional market exposure, true effective leverage ratio, and margin call safety buffer.
Trade Parameters
$
100,000 units
✓ Healthy Margin Level (>300%)
Your margin level is robust with substantial free buffer to withstand normal intraday volatility.
Leverage & Margin Summary
Calculated for 1 Lot(s) of EUR/USD at 1:100
Required Margin (Deposit)
$1,086.50
Locked capital by brokerTotal Market Exposure
$108,650.00
Notional contract valueEffective Leverage Ratio
21.7:1
Actual portfolio risk exposureMargin Level Percentage
460.2%
Free Margin: $3,913.50Global Regulatory Leverage Caps
United States (CFTC / NFA)1:50 Major FX / 1:20 Minor
European Union (ESMA) & UK (FCA)1:30 Major FX / 1:20 Minor
Australia (ASIC)1:30 Major FX / 1:20 Minor
Offshore & International (SVG, Seychelles)Up to 1:500 (High Risk)
COMPANION TOOL
Use Margin Tool →Margin Calculator
Check exact broker margin requirements across multi-currency accounts and calculate available free capital.
LESSON GUIDE
Read Leverage Lesson →What Is Leverage and Margin?
Master the mathematics of borrowed exposure, collateral locks, and liquidation cascades in our Junior Trader course.
Frequently Asked Questions
Account Leverage (e.g. 1:100) is the maximum ratio allowed by your broker. Effective Leverage is the actual market exposure you control relative to your equity: Effective Leverage = Total Position Value / Account Balance. For example, controlling $50,000 in positions on a $10,000 account means your effective leverage is 5:1.
Required Margin = (Units Traded × Current Base Exchange Rate) / Leverage Ratio. For example, 1 standard lot (100,000 EUR) of EUR/USD at 1.0850 requires $108,500 of notional value. At 1:100 leverage, your required margin is $108,500 / 100 = $1,085.
When your Margin Level (Equity / Used Margin × 100) drops below 100%, you are on a Margin Call. Your broker will prohibit opening new trades. If the level continues falling to the Stop-Out level (typically 50% or 20%), the broker's automated risk engine will forcibly liquidate your open positions to prevent negative balance.
Leverage itself is just a multiplier. Risk is determined entirely by lot size and stop-loss distance. However, high leverage allows novice traders to open disproportionately large lot sizes, where a tiny 20-pip adverse move can wipe out their entire deposit.