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Margin & Leverage Calculator

Calculate margin requirements, leverage ratios, liquidation price, and profit/loss with leveraged positions in stocks and forex.

Margin Calculator

$
1-2: Safe3-5: Moderate5+: Risky

MARGIN CALL PRICE

$66.67

33.3% drop triggers margin call

Position size
$20,000
Amount borrowed
$10,000
Annual interest
$650
Daily interest cost
$1.78

P&L AT VARIOUS PRICES

-20%$80.00$-4,000-40%
-10%$90.00$-2,000-20%
-5%$95.00$-1,000-10%
+0%$100.00+$00%
+5%$105.00+$1,00010%
+10%$110.00+$2,00020%
+20%$120.00+$4,00040%

Frequently Asked Questions

What is margin trading?

Margin trading lets you borrow money from your broker to control larger positions. At 2:1 leverage, $5,000 controls $10,000 of stock. Gains and losses are amplified by the leverage ratio.

What is a margin call?

A margin call occurs when your account equity falls below the maintenance margin requirement (typically 25% for US stocks). You must deposit more funds or close positions within 2-3 days.

How much leverage is too much?

For stocks: 2:1 maximum recommended. For forex: 5:1 maximum for beginners, professional traders rarely exceed 10:1 despite 50:1 availability. Crypto: 2-3:1 maximum given volatility.

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For educational purposes only. Not financial advice. Consult a qualified advisor before making investment decisions.