The margin for a trade in MetaTrader 5 depends on the symbol’s margin calculation mode, shown in its specification. For currencies it is usually lots × contract size ÷ leverage, in the base currency, converted into your account currency. For many CFDs the current price enters the formula as well. Once a position is open, MT5 shows the margin in use, your free margin and your margin level in the Trade tab.
Key takeaways
- Find the calculation mode in the symbol specification: common ones are Forex, CFD, CFD Leverage and Futures.
- Forex mode: lots × contract size ÷ leverage, in the margin currency.
- CFD Leverage mode: lots × contract size × price ÷ leverage.
- Margin is converted into the account currency using the current exchange rate.
- Margin level = equity ÷ margin × 100. The account is closed out if it falls to the stop-out level.
| Where to find the mode | Market Watch › right-click symbol › Specification |
|---|---|
| Forex | Lots × Contract size ÷ Leverage |
| CFD | Lots × Contract size × Price × Margin rate |
| CFD Leverage | Lots × Contract size × Price ÷ Leverage |
| Margin level | Equity ÷ Margin × 100% |
| Where MT5 shows it | Toolbox › Trade: Margin, Free margin, Margin level |
The margin formulas in MT5
| Mode | Formula | Typically used for |
|---|---|---|
| Forex | Lots × Contract size ÷ Leverage × Margin rate | Currency pairs |
| CFD | Lots × Contract size × Market price × Margin rate | Some index and share CFDs |
| CFD Leverage | Lots × Contract size × Market price ÷ Leverage × Margin rate | Metals, energy, indices, crypto at many brokers |
| Futures | Lots × Initial margin set per contract | Exchange-style instruments |
The margin rate is usually 1, but a broker can set a different rate per symbol; it appears in the specification. The result is in the symbol’s margin currency and is converted into your account currency. Where leverage differs by symbol or by account type, use the value that applies to you. Menu names can differ slightly between MetaTrader 5 desktop, mobile and Web Trader, and between versions.
Worked examples (illustrative figures)
| Trade | Calculation | Margin |
|---|---|---|
| EURUSD, 0.10 lots, 1:200, price 1.1000, Forex mode | 0.10 × 100,000 ÷ 200 = €50, × 1.1000 | $55 |
| XAUUSD, 0.10 lots (10 oz), 1:100, price $4,000, CFD Leverage mode | 0.10 × 100 × 4,000 ÷ 100 | $400 |
| US500, 1 lot at $1 per point, 1:100, price 6,500, CFD Leverage mode | 1 × 1 × 6,500 ÷ 100 | $65 |
Contract sizes and leverage are assumptions here; the values that apply to your account are in the contract specification.
Where MT5 shows margin
| Field | What it means |
|---|---|
| Balance | Money in the account, excluding open positions |
| Equity | Balance plus or minus the floating profit or loss |
| Margin | Margin currently used by open positions |
| Free margin | Equity minus margin: what is available for new positions |
| Margin level | Equity ÷ margin × 100% |
Some versions of the order window show the margin a new trade would need; if yours does not, calculate it with the formula above before you click. After opening, check that free margin is still comfortably positive. The terms are explained in balance vs equity vs free margin and margin call vs stop out level.
Why low margin is not low risk
Margin is a deposit, not the size of your risk. In the EURUSD example, $55 controls $11,000 of currency; a 50-pip move changes the position’s value by $50, nearly the whole margin. What matters is the loss if the market moves against you, which depends on lot size and stop distance. Start from position sizing and how leverage increases trading risk.
Common mistakes to avoid
Confusing margin with risk. The margin says nothing about how much you can lose.
Ignoring currency conversion. Margin in euros or yen is converted to your account currency.
Using all free margin. Small adverse moves then push the account towards stop-out.
Assuming the same leverage everywhere. Metals, indices and crypto often carry lower leverage than currencies.
Negative balance protection applies to all Marketsall account types, so a retail account cannot fall below zero. It caps the worst case. It does not reduce the chance of losing the money in the account. More in gap risk and how leverage increases trading risk.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
How is margin calculated on MT5?
It depends on the symbol’s margin calculation mode. For currency pairs in Forex mode, margin is lots × contract size ÷ leverage, in the base currency. In CFD Leverage mode it is lots × contract size × market price ÷ leverage. The result is converted into the account currency.
Where can I see margin in MT5?
Open the Toolbox with Ctrl+T and choose the Trade tab. The account line shows balance, equity, margin, free margin and margin level. The calculation mode for each symbol is in Market Watch › right-click › Specification.
What is margin level in MT5?
Margin level is equity divided by used margin, times 100. At 500% your equity is five times the margin in use. If it falls to the broker’s stop-out level, positions are closed automatically, starting with the least profitable.
How much margin do I need for 1 lot of EURUSD?
At a contract size of 100,000 and leverage of 1:200, 1 lot needs €500, which is $550 when EURUSD is 1.1000. At 1:100 it would be double. Check the leverage that applies to your account.
What is free margin?
Free margin is equity minus the margin used by open positions. It is the amount available to open new trades or to absorb losses before the account reaches a margin call.
Related reading
Compare your result with the Trade tab
Work out the margin for your next trade by hand, then follow how that figure behaves once a position is running in reading balance, equity and margin in the MT5 terminal, and if you hold several related symbols, see how correlated positions drain free margin together.
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