# Required Margin Calculator

#### 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: 500
Exchange rate: 1.5495
[(2.5 * 100,000 EUR * 1.5495 AUD per EUR)/500] = 774.74 AUD.
Prices at time of calculation

Converting this to account currency:

774.74 AUD * 0.66407 USD per AUD = 514.48 USD.
Prices at time of calculation

To open the trade, you would require a minimum margin of 514.48 USD