# Required Margin Calculator

The calculators are used for illustrative purposes only and use default account settings, including standard margin rates. It does not consider all variables such as dynamic margin rates or effective leverage. Calculations may vary based on different server setups or client specific account settings.

#### What is a required margin calculator?

The Axi margin calculator is a trading tool that will help traders determine how much margin is required to open a trading position.

#### How does our margin calculator work?

To calculate the margin required to open a trade, the calculator will multiply trade size with the price of the instrument, and then divide by leverage.

## The calculation formula

For lots:

[(Number of lots * Notional value of lot * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)

For cash/units:

(Units * Price of product) / Leverage Factor] *Account currency exchange rate
(Only if the account currency is different from the denominated currency of the product)

The leverage factor is calculated as follows (Margin % and Initial Margin Rate % can be found in the product schedule):

For products that use account leverage:
Account leverage / (Margin % * 100)

For products that have fixed leverage:
1/Initial Margin Rate %

## How to use the calculator

Example

Account base currency: USD
Leverage: 30
Exchange rate: 1.5495
[(0.1 * 100,000 EUR * 1.5495 AUD per EUR)/30] = 516.5 AUD.
Prices at time of calculation

Converting this to account currency:

774.74 AUD * 0.66407 USD per AUD = 342.99 USD.
Prices at time of calculation

To open the trade, you would require a minimum margin of 342.99 USD