Leverage Calculator

Leverage

Profit

Margin

Position Size Margin Requirement

Leverage Ratio: 0:0

Entry Price Exit Price Position Size Leverage Ratio

Total Profit: $0

Position Size Leverage Ratio

Required Margin: $0

The free Leverage Calculator helps traders measure the exact leverage ratio behind every trade. Whether you trade forex, crypto, or CFDs, our tool translates your margin and position size into a clear number, making it easier to manage exposure and risk. Indian traders especially benefit by combining the leverage calculator with tools like the Position Size Calculator and Margin Calculator to build a complete money-management plan.

What Is Leverage in Trading?

Leverage allows traders to control larger positions with a smaller deposit. A leverage ratio of 1:100 means that for every $100 you commit, you can open a $10,000 position. This multiplier effect can significantly boost profits — but it also amplifies losses if the market moves against you. Brokers like Binance and forex platforms offer different maximum leverage levels depending on the asset, volatility, and regulations.

In practice, leverage is both a powerful opportunity and one of the biggest risks. That is why having a Leverage Calculator at hand ensures you always know your true exposure.

How to Use the Leverage Calculator

Enter Margin: The capital you are committing to open the trade.
Enter Position Size: The total notional value of your trade (for example, $50,000 in EUR/USD).
Click Calculate: Instantly receive your leverage ratio (Position Size ÷ Margin).

Example: If your margin is $500 and your position size is $25,000, the leverage ratio is 1:50. That means your trade is magnified 50 times relative to your actual capital. Advanced traders often use lower leverage (1:5 or 1:10) for better long-term consistency, while scalpers sometimes push higher leverage for very short-term trades.

Why Leverage Matters

Correctly calculating leverage protects your account from excessive drawdowns. Many beginners focus only on profit potential, but seasoned traders know that survival in trading depends on capital preservation. Using our Leverage Calculator gives you an instant risk snapshot before you click buy or sell.

Tips for higher-level traders:

Re-check leverage during high volatility events (e.g., FOMC, CPI, NFP, Bitcoin halving) — margin requirements can change quickly.
Compare leverage across assets. Gold (XAU/USD) often requires higher margin than EUR/USD. Crypto pairs can demand even more.
Use “stress testing”: calculate leverage assuming the position doubles in size. This helps you anticipate margin calls.
Keep your effective leverage below 1:20 if trading long-term; higher ratios are more suitable for short-term intraday strategies.

Related Tools

Outbound resource: Investopedia – Leverage Definition

Frequently Asked Questions

› 1. What is the right leverage ratio?

There is no single right ratio. If you are new, start with a low ratio like 5:1 or 10:1, As you gain experience, you can use a little more leverage. But risk control is important every time.

› 2. How to make a profit with leverage?

For this, you need to know four things: entry price, exit price, position size, and leverage ratio. When you enter these four into our calculator, it gives both profit and ROI.

› 3. Is high leverage risky?

Yes. The higher the leverage, the higher the risk. If the price moves even slightly in the wrong direction, the entire account can be lost. So, always use the right ratio and stop loss.

› 4. How is leverage calculated?

The easiest way to calculate leverage is to divide the position size by the margin.
For example, if your trade position is worth ₹1,00,000 and you have applied a margin of ₹5,000, your leverage ratio is 20x (₹1,00,000 ÷ ₹5,000 = 20).
You can do this calculation directly using the leverage calculator on our website.

› 5. What does 20x leverage on ₹100 mean?

If you invest ₹100 and take 20x leverage, you are controlling a trading position worth ₹2,000.
If that position makes a profit of 5%, you will earn a profit of ₹100 — whereas without leverage, you would have earned just ₹5.

› 6. Does 5x leverage mean 5x profits?

Yes, 5x leverage can give you up to five times the profit if the market moves in your direction.

For example, if you have ₹10,000 and you take 5x leverage, you can open a position of up to ₹50,000. But remember — the higher the leverage, the higher the risk.

› 7. Does this calculator work for every market?

Yes. You can use it for crypto, forex, and stocks. Just enter the values according to your market and get the result.

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Leverage Calculator