The formula to calculate the required margin for FX currency pairs is as follows:
Required Margin = (Transaction Currency Amount x Volume (lot) ÷ Leverage) x Conversion Rate to Account Base Currency
- Trading Currency Amount = Contract Size (100,000 for standard/blade accounts, 1,000 for micro accounts)
- Volume = Lot (e.g., 1 for 1 lot, 0.5 for 0.5 lot)
- Leverage = Trading leverage
- Conversion Rate = Exchange rate to account base currency
If the base currency of the account is USD, the above remains the same.
Example for JPY as the account base currency: Margin Requirement (JPY) = (100,000 x 1 ÷ 500) x USDJPY Rate
Example for EUR as the account base currency: Margin Requirement (EUR) = (100,000 x 1 ÷ 500) x EURUSD Rate