Margin / Leverage Calculator
See the margin a leveraged position requires, how a price move multiplies into gains or losses, and roughly where liquidation sits.
How it works
Margin = position ÷ leverage · P/L = position × move% · Return on margin = P/L ÷ margin · Liquidation ≈ 100% ÷ leverage
Leverage lets a small deposit — the margin — control a much larger position, so every price move is multiplied by the leverage ratio when measured against your own cash. Ten-times leverage turns a 3% market move into a 30% swing on your margin, in either direction. The flip side is that an adverse move of roughly 100% ÷ leverage exhausts the margin and triggers liquidation, which is why high leverage is so quickly ruinous.
Worked example
A $10,000 position at 10× leverage needs $1,000 of margin. A 3% favourable move earns 10,000 × 0.03 = $300, a 30% return on that $1,000. But a move of about 10% against you (100% ÷ 10) erases the margin and closes the trade.
Frequently asked questions
How is the liquidation level estimated?
As a simple 100% ÷ leverage: the adverse move that equals your entire margin. Real liquidation happens a little sooner because of maintenance-margin requirements, funding costs and fees — treat this as an optimistic upper bound.
Does more leverage mean more profit?
It magnifies both profit and loss equally, and it shrinks the move needed to liquidate you. Higher leverage does not improve your odds — it just raises the stakes on each tick.
Is margin the same as my maximum loss?
With most brokers your loss is capped at the margin posted (plus fees), because the position is liquidated before it goes further. Some accounts allow negative balances, so confirm your broker has liquidation and negative-balance protection.
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Educational estimate, not investment advice. Markets involve risk of loss.