what would be the required margin for 1 lot (100,000) eurusd position if your leverage is 1:100?

@chris_4eva - 8 months ago - Forex Tools & Resources

I know we can use a margin calculator for this but how do you manually calculate the required margin for a EUR/USD standard lot trade on a 1:100 leverage account?

@george_kramer - 8 months ago

Great question Chris. I think this has to do with the basics of forex trading which every beginner should understand.

Now to your question let us assume the EUR/USD exchange rate is 1.0661.

Without using leverage the required margin to open the trade would have been 100,000 x 1.0661 = $106,610

With a 1:100 leverage, the trader will only need a margin of ($106,610/100) = $1,066

@asamoah_the_great - 8 months ago

Quoted - george_kramer

Great question Chris. I think this has to do with the basics of forex trading which every beginner should understand.

Now to your question let us assume the EUR/USD exchange rate is 1.0661.

Without using leverage the required margin to open the trade would have been 100,000 x 1.0661 = $106,610

With a 1:100 leverage, the trader will only need a margin of ($106,610/100) = $1,066

Margin is the inverse of leverage so a 1:100 leverage is a 1% margin. If EUR/USD price is 1.0555 then a standard lot will be worth $105,550 and a 1% margin means $1,055.5 to open a trade.