Free Stock & Forex Margin Calculators
Stock Trading Margin Calculator
Amount Required:
Currency Exchange Margin Calculator
Amount Required:
Formulas Used
- Stock Margin Formula: Amount Required = Stock Price × Number of Shares × (Margin Requirement ÷ 100)
- Forex Margin Formula: Amount Required = (Units × Exchange Rate) ÷ Margin Ratio
Understanding Margin Trading
What Is Margin Trading?
Margin trading allows investors to purchase securities by borrowing money from their broker. This leverage can amplify both profits and losses, making it crucial to understand margin requirements before trading.
Key Concepts
- Initial Margin: The minimum amount required to open a leveraged position
- Maintenance Margin: The minimum equity that must be maintained in the account
- Margin Call: A demand for additional funds when the account falls below maintenance requirements
- Leverage Ratio: The ratio of borrowed funds to your own capital
Reference: For more information on margin requirements, visit the official U.S. Securities and Exchange Commission website.
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