Required Margin is the amount of funds that is set aside from your account when you open a trade. It is not a fee and it is not lost — it is simply locked as collateral while the position remains open.
This article explains how required margin per trade is calculated on MT4/MT5.
What Is Required Margin?
Required margin is the capital needed to open and maintain a position.
The amount depends on:
The lot size
The contract size
The leverage on your account
The base currency of the instrument
Required Margin Formula
You can calculate required margin using either of the following formulas:
Using leverage:
Required Margin = (Lot Size × Contract Size) ÷ Leverage
Using margin percentage:
Required Margin = Lot Size × Contract Size × Margin %
Important Note About Base Currency
Required margin is always calculated in the base currency of the traded instrument.
| Symbol | Base Currency | Quote Currency |
|---|---|---|
EURUSD | EUR | USD |
USDJPY | USD | JPY |
GBPUSD | GBP | USD |
If your trading account is in a different currency, the platform will automatically apply a currency conversion.
Examples
Example 1: EURUSD Trade
You open 1 lot of EURUSD with a margin requirement of 3.33%.
Contract size: 100,000
Margin calculation:
1 × 100,000 × 3.33% = 3,330 EUR (Required Margin)
Example 2: USDJPY Trade
You open 1 lot of USDJPY with 1:30 leverage.
Contract size: 100,000
Margin calculation:
1 × 100,000 ÷ 30 = 3,330 USD (Required Margin)