Margin & Leverage Calculator
Compute the margin required to hold a leveraged position and the margin as a percentage of position value, from price, quantity, and leverage.
Calculator
e.g. 5 means 5:1.
Formula
- Position value = Price × Quantity
- Required margin = Position value ÷ Leverage
- Margin % = 1 ÷ Leverage
How it works
Leverage lets you control a position larger than the cash you post as margin. This calculator converts a chosen leverage into the margin required and the percentage of the position that represents.
Leverage cuts both ways: it shrinks the margin needed but magnifies both gains and losses on the full position value. Higher leverage means a smaller adverse move can wipe out your posted margin.
This is the mechanical relationship between price, size, and leverage. It is educational arithmetic — not advice, and not a statement of any broker's actual margin or liquidation rules.
Example use cases
5x on a $1,000 position
10 units at $100 with 5x leverage → $1,000 position, $200 required margin (20%).
No leverage
At 1x, the full $1,000 must be posted as margin (100%).
Frequently asked questions
Does this show my liquidation price?+
No. Liquidation depends on your broker's maintenance-margin rules, fees, and funding, which vary widely. This tool covers the initial margin relationship only.
Is more leverage better because it needs less margin?+
Less margin is not free — the same leverage that reduces margin amplifies losses on the full position. Higher leverage means a smaller move against you can erase your margin.