A margin call calculator is a tool that traders and investors use to find out at what price their asset will receive a margin call when leverage trading forex, stocks, or crypto.
Margin Call Price: $0.00
Assumes standard margin formulas for long/short positions. No fees included.
How to use the margin call calculator:
- Add your initial purchase price (eg. 30, 250, or 6500)
- Input your initial margin % (typically between 20-50%)
- Add your maintenance margin % (you can find this on your broker’s website)
- Click calculate!
What is a margin call calculator?
A margin call price calculator is a tool used by traders to see at what price a margin call will be signaled from your broker.
Your margin is the trading capital, or collateral, that you deposit into your trading account.
By using a calculator to track margin calls you can know beforehand at what price you will expect a margin call from your broker.
The margin call calculator takes into account your initial purchase price, initial margin percentage, and your maintenance margin percentage.
With these inputs, the calculator calculates the margin call price of the position you are analyzing.
How to calculate margin call price
To calculate the margin call price of an asset or a position you first need to understand the concept of “maintenance margin” and the formula for calculating it.
Maintenance margin means the amount of margin capital that is required to keep a position open to avoid a margin call.
Maintenance margin = (Total Position Value) * (Maintenance Margin Requirement)
For example, your leverage stock trading platform might ask you to keep a minimum of 30% of your capital as maintenance margin if your open positions.
To calculate a margin call for any position, follow these steps:
- Determine the total position size: Multiply the current asset price by the number of shares you want to buy and the leverage ratio you want to use.
- Total Position Value = (Number of Units or Shares) * (Current Market Price)
- Calculate the maintenance margin: Multiply the total position size and the maintenance margin required by your broker.
- Maintenance Margin = (Total Position Value) * (Maintenance Margin Requirement)
- Calculate the margin call price: To get the margin call price, subtract the maintenance margin from the total position value and then divide that result by the number of units in your position.
- Margin Call Price = (Total Position Value – Maintenance Margin) / (Number of Units or Shares)
Our formula
The margin call formula calculates the price at which the margin call will get triggered.
The formula to calculate a margin call is:
Margin call = initial purchase price * [(1- initial margin)/ (1-maintenance margin)]
- Initial purchase price = The current price of the asset
- Initial margin = The amount of your own collateral that goes into the position
- Maintenance margin = The minimum required margin required by your broker