Forex position size, margin and leverage calculator
Size the trade
before you place it.
Enter your balance, risk and stop loss to get the position size, then see the pip value, the margin it needs and the leverage it really runs at. Retail mode applies the ESMA caps used by CySEC and other EU regulators. Everything is calculated in your browser.
- Amount at risk
- –
- Pip value per lot
- –
- Position value
- –
- Leverage applied
- –
- Required margin
- –
- Effective leverage
- –
- Margin close-out at
- –
Example prices only: enter the live price before you rely on a result. Contract sizes and margin rules differ between brokers; check the symbol specification on your platform.
How it is calculated.
- Amount at risk
- Balance × risk %
- Pip value per lot
- Contract size × pip size, converted from the quote currency into your account currency
- Position size (lots)
- Amount at risk ÷ (stop loss in pips × pip value per lot), rounded down to 0.01
- Position value
- Lots × contract size × price, converted into your account currency
- Leverage applied
- Your account leverage; for retail clients, never above the ESMA cap for the instrument
- Required margin
- Position value ÷ leverage applied
- Effective leverage
- Position value ÷ balance
- Margin close-out
- Retail positions are closed when equity falls to 50% of the required margin
ESMA retail leverage caps.
The limits ESMA set for retail CFD clients in 2018 and that CySEC and other EU regulators now apply as national rules. Brokers on relioops apply them automatically by client category: forex CRM for CySEC brokers.
| Underlying | Examples | Max leverage |
|---|---|---|
| Major currency pairs | Any pair of USD, EUR, JPY, GBP, CAD and CHF | 30:1 |
| Non-major pairs, gold, major indices | AUD/USD, XAU/USD, S&P 500, DAX, FTSE 100 | 20:1 |
| Other commodities and indices | Oil, silver, non-major equity indices | 10:1 |
| Individual equities and others | Single-share CFDs | 5:1 |
| Cryptocurrencies | BTC/USD, ETH/USD | 2:1 |
Calculations, answered.
How do you calculate position size in forex?
Divide the amount you are willing to lose by the value of your stop loss. Risk amount = account balance × risk %. Position size in lots = risk amount ÷ (stop loss in pips × pip value per lot). With a 10,000 USD account, 1% risk, a 25-pip stop and 10 USD per pip per lot on EUR/USD, that is 100 ÷ (25 × 10) = 0.40 lots.
How is forex margin calculated?
Required margin = position value ÷ leverage. Position value is the number of units times the price, converted into your account currency. 1 lot of EUR/USD at 1.0800 is 108,000 USD, so at 30:1 the margin is 3,600 USD.
What is the maximum leverage for retail clients under ESMA and CySEC?
30:1 on major currency pairs, 20:1 on other currency pairs, gold and major indices, 10:1 on other commodities and non-major indices, 5:1 on individual equities and other underlyings, and 2:1 on cryptocurrencies. Retail accounts also have negative balance protection and a margin close-out at 50% of required margin.
How much is a pip worth?
Pip value per lot = contract size × pip size, converted into your account currency. For any pair quoted in USD, one standard lot (100,000 units) moves 10 USD per pip. For a pair quoted in JPY, a pip is 0.01, so one lot moves 1,000 JPY per pip.
Does professional client status remove leverage limits?
It removes the ESMA retail caps, not limits altogether. A broker still sets leverage for professional clients under its own risk policy, and professional clients lose the retail protections, such as negative balance protection, that come with the caps.
Why does my broker show a different margin?
Contract sizes, margin rates per symbol, currency conversion and the price used (bid, ask or mid) differ between brokers and platforms. Use your broker's contract specification for the exact figure; this calculator shows the standard method.
