How is required margin calculated?

Required margin equals the notional position value multiplied by the margin percentage, where the margin percentage is 100 divided by the leverage ratio. A 50,000 position at 30:1 leverage needs about 3.33%, or 1,667, in margin.

What leverage limits do ESMA and the FCA set for retail clients?

The limits are 30:1 for major FX, 20:1 for non-major FX, gold, and major indices, 10:1 for other commodities and minor indices, 5:1 for individual equities, and 2:1 for cryptocurrencies. These are maximums; brokers may impose stricter limits but not looser ones for retail clients.

What is the 50% close-out rule?

ESMA and FCA rules require brokers to close a retail client's positions when account equity falls to 50% of the initial required margin. The tool shows that stop-out equity level and the loss from your margin that would trigger it.

Can my broker offer me higher leverage than the cap?

Not for a retail account. If you enter a broker leverage above the regulatory cap, the tool applies the cap instead and flags it. Higher leverage is only available to clients who qualify and opt in as professional, who lose certain retail protections.

Does a stricter broker leverage change my margin?

Yes. If your broker sets a leverage lower than the regulatory maximum, the tool uses the stricter figure, which raises the required margin. The effective margin rate shown reflects whichever leverage is tighter.

CFD & Spread-Bet Margin Requirement Calculator

Margin is the deposit a broker holds against a leveraged position, and for retail traders in the UK and EU it is governed by hard regulatory limits. This calculator applies the ESMA and FCA leverage caps to your position so you know exactly how much margin is required and where the automatic close-out sits.

How it works

Margin is the notional value scaled by the regulatory margin rate, which is the inverse of the leverage cap for the asset class:

margin rate    = 100 / max leverage        (e.g. 30:1 → 3.33%)
required margin = notional value × margin rate
stop-out equity = required margin × 50%     (ESMA close-out rule)

If you enter a broker leverage that is stricter than the cap, the tool uses it and raises the margin accordingly. If you enter one looser than the cap, it is rejected for retail accounts and the regulatory cap applies instead.

Example and notes

A 50,000 position in a major FX pair at the 30:1 cap requires about 1,667 in margin. The 50% close-out rule means that once your equity on the position falls to roughly 833, the broker must close it, so a loss of about 833 from your margin triggers the stop-out. These are educational figures, not trading advice: actual margin can vary with overnight financing, slippage, and the precise close-out mechanics of your broker, and crypto at 2:1 ties up far more capital per unit of exposure than major FX.