What is the difference between margin and leverage?

Leverage is the ratio that determines how much you can control relative to your deposit (e.g., 1:100). Margin is the actual dollar amount required as collateral (e.g., $1,000 for a $100,000 position).

What happens if I get a margin call?

You'll be notified to deposit more funds. If you don't, your broker will automatically close some or all of your positions to bring your account back within margin requirements.

What margin level should I maintain?

Aim to keep your margin level above 200% at all times. Many traders consider anything below 150% as a warning sign to reduce position size or add funds.

Can I lose more than my deposit with margin trading?

Potentially yes, in extreme market conditions. However, many regulated brokers now offer negative balance protection, which limits your maximum loss to your deposited funds.

How do I calculate my margin level?

Margin Level = (Equity ÷ Used Margin) × 100%. For example, if your equity is $5,000 and used margin is $2,000, your margin level is 250%.

Forex Basics

Forex Margin Explained: Complete Guide

Understand margin requirements, how to calculate margin, and strategies to avoid margin calls. Essential guide for leveraged trading.

Written ByEdith BalazsFact-Checker & Research Lead

Fact Checked ByMarcus ThompsonTrading Platforms Expert

Last UpdatedOct 18, 2026

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Edith Balazs

Fact-Checking • Research • Data Verification

About the Author

Edith is a Certified Financial Analyst (CFA) with a background in financial journalism. She leads our fact-checking team, verifying every data point, fee structure, and regulatory claim in our broker reviews to ensure accuracy and reliability.

Fact-Checker & Research Lead — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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