 # What is Margin in Forex? | Margin Calculation

In Simple Words, Margin is the amount that you must need to have in your account to open or maintain your opened positions as per your account base currency.

## How to Calculate Margin for Forex?

!!Lots x Contract size x Open Price / Leverage!!
1. Example: if you buy 1 standard lot of GBP/USD at 1.6250 and Leverage is 1:500
Formula for Margin Calculation:  = Lots x Contract size x Opening Price / Leverage
= 1 x 100,000 x 1.6250 / 500
= 325GBP
The answer is always in a primary/ 1st currency of the pair then you will need to change into your account base currency.
2. Example: if you buy 1 standard lot of EUR/USD at 1.0568 and Leverage is 1:500
Formula for Margin Calculation: = Lots x Contract size x Opening Price / Leverage
= 1 x 100,000 x 1.0568 / 500
= 611.36EUROS ### Margin Level Calculation:

Formula: = Equity / Margin x 100%
I think I have cleared you everything on Calculating Margin in Forex. If you still have a question, then please don’t hesitate to ask us on comment section below of this post.