Calculate the required margin, borrowed amount, and maximum leverage for a trading position, based on your broker's margin requirement.
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This is a trading and investing margin calculator, not a business profit margin calculator (see our Profit Margin and Gross Margin Calculators for that). Margin trading lets you control a larger position than your cash alone would allow, by borrowing the rest from your broker. Required Margin = Position Value × Margin Requirement %, and the remainder is the amount effectively borrowed.
For example, a 20,000 position with a 25% margin requirement needs 5,000 of your own cash, with the remaining 15,000 borrowed, giving you implied leverage of up to 4:1.
Because you're controlling more shares or contracts than your cash alone would buy, both gains and losses are magnified relative to your invested capital. If the position moves against you enough, your broker can issue a margin call requiring you to add funds or have the position liquidated.
No, this calculates trading margin, the collateral required to open a leveraged position. Our Profit Margin and Gross Margin Calculators measure business profitability instead, a completely different concept that happens to share the word 'margin.'
It varies by broker, asset type and regulation, common initial margin requirements range from around 25% to 50% for stocks, with other asset classes like forex or futures often allowing much higher leverage (lower margin percentages).
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