Margin is the initial collateral required to open a transaction, calculated based on the leverage.

Margin equals to:

trade value divided by account leverage

trade value: trade volume × contract volume × symbol unit price

Exception: Note that leverage has a fixed amount for different accounts in cryptocurrency and stock symbols.

Example:

Get the required Margin for one lot of EUR against USD in your account with a leverage of 100 (1:100) at the rate of 1.4345.

Each euro lot against the US dollar is one hundred thousand euros.

The EUR/USD rate is equal to 1.4345

100 thousand × 1.4345 equals 143450

So, one lot of euros is equal to 143450 dollars. Our leverage is 1:100. As a result, we have to provide one percent of it.

That means:

143450 divided by 100 times would equal $1434.50.

So, a position with the volume of one EUR/USD lot in an account with a leverage of 1:100 needs a $1,434.50 margin.