Margin calculator
Live price: n/a (updates automatically, you can overwrite any field)
Loading live price...
Margin Calculator for Gold, Oil and Silver
See how much margin a trade needs. Choose the instrument, lots and leverage and the calculator shows the full position value and the share of it you must put up.
How margin is calculated
Margin = price x contract size x lots / leverage. The first part is the notional value of the position. Leverage of 1:20 means you put up one twentieth of that value.
Example for gold at a price of 2,000: one lot is 100 ounces, so the position is worth $200,000. At leverage 1:20 the margin is $10,000. At 1:100 it is $2,000. Higher leverage lowers the margin but not the risk: the position still moves with the full $200,000.
Rules and limits
Regulators set leverage limits for retail clients. In the European Union, for example, the limit has been 20:1 for gold and 10:1 for other commodities such as oil. Limits differ by country and broker and can change, so check your own provider.
Exchange-traded futures work differently. The exchange sets an initial and a maintenance margin in dollars per contract and may change it when volatility rises.
Default contract specifications used
| Instrument | 1 lot | Pip size | Value of 1 pip per lot |
|---|---|---|---|
| Gold (XAU/USD) | 100 oz | 0.1 | $10.00 |
| Silver (XAG/USD) | 5,000 oz | 0.01 | $50.00 |
| WTI crude oil | 1,000 barrels | 0.01 | $10.00 |
| Brent crude oil | 1,000 barrels | 0.01 | $10.00 |
| Natural gas | 10,000 MMBtu | 0.001 | $10.00 |
| Copper | 25,000 lb | 0.0005 | $12.50 |
| Platinum (XPT/USD) | 50 oz | 0.1 | $5.00 |
| Palladium (XPD/USD) | 100 oz | 0.1 | $10.00 |
Typical values, not offered by us. Always confirm with your own broker or exchange.
Frequently asked questions
Is margin a fee?
No. Margin is a deposit held while the position is open. You get it back when the trade is closed, adjusted for profit or loss.
What is a margin call?
If losses reduce your account equity below the broker maintenance level you are asked to add funds, or the broker closes positions automatically.
Why is the margin different at my broker?
Brokers set their own leverage per instrument and per client, and may require extra margin around news events or when markets are closed.
Does more leverage make a trade safer?
No. It frees capital but leaves the profit and loss on the full position unchanged, so losses can come quickly.
Related
Leverage and margin explainedPosition size calculatorPip calculatorLive gold price
Educational calculator, not investment advice. Leveraged products such as CFDs carry a high risk of losing money quickly. Prices are indicative. Terms.