In forex, margin calculations reflect the deposit made by a trader to secure a position. Consider it collateral; it is not a fee nor a cost, but it ensures that your account will be able to manage the trades you make. The required margin is directly proportionate to the amount traded. If you put too much money on margin, you risk losing everything if your trades fail. Trading on margin contributed significantly to stockbrokers' losses during the 1929 market crash. Keep this in mind at all times when trading forex. For Forex trading, the margin calculation formula is simple. It is sufficient to multiply the deal size by the margin percentage. Subtract the margin used for all trades from the account equity that remains. The resulting figure is the amount of the remaining margin.