Leverage lets you control a larger notional position than your cash balance alone would suggest, by posting margin as collateral. If your account shows 1:30 leverage, that is a regulatory or broker policy cap describing how large a position can be relative to equity—not a suggestion to use the maximum.
Required margin vs free margin
Required margin is what the broker locks for open positions. Free margin is what remains available for new trades or to absorb drawdown. When free margin shrinks toward zero, liquidation risk rises.
Margin is not the same as risk
Posting a small margin ticket does not mean the trade is “small.” A volatile move against you can still produce a large loss relative to account size.
Use the margin calculator to compare margin requirements across sizes and leverage assumptions.
Margin as a policy dial, not a speed boost
Regulators cap leverage for retail accounts because high leverage compresses the distance between a normal drawdown and a margin call. Think of leverage as a ceiling on position size given your equity—not a score to maximize.
Equity swings change everything intraday
Because margin requirements are often stated in account currency while floating P&L moves equity, a string of open losses can shrink free margin even if no new trades are opened. Monitoring free margin alongside open risk is part of basic hygiene.
- Set platform alerts for margin level if available.
- Precompute worst-case margin stacks before adding correlated trades.
- Understand whether hedged legs reduce or increase required margin at your broker.
Closing the loop with calculators
Use margin previews when you change leverage tiers, roll onto a new account type, or add a volatile symbol you rarely trade. The goal is fewer Friday-afternoon surprises.