Margin is not your maximum loss
Compare the notional, margin and planned stop loss of the same position without confusing their roles.
Three numbers describe different things
A position’s notional measures market exposure. Initial margin estimates the collateral required to open or support it. Planned stop risk models the price change between an entry and an intended exit. These quantities can be calculated from the same trade, but none should silently substitute for another. A small margin requirement does not make a large position’s price fluctuations small.
Calculate notional in a common currency
Use a hypothetical EUR/USD rate of 1.20 and a 100,000-EUR position. Multiplying 100,000 by 1.20 gives $120,000 of USD notional. If the account currency is USD, that common unit lets us compare the simplified margin result with account cash. A different account currency needs an additional conversion. SanForex’s margin tool uses the base-to-account conversion; using the quote-to-account conversion alone would miss the base notional.
Apply a stated leverage assumption
At an assumed 30:1 leverage, simplified initial margin is $120,000 / 30 = $4,000. At an assumed 20:1 it is $6,000. Both examples refer to exactly the same 100,000-EUR position. These leverage values are illustrations, not trading terms being offered. Real requirements can be tiered and can depend on the instrument, account classification, existing positions and changing provider rules. The broker’s order ticket and account terms take precedence.
Compare the stop-distance amount
Under the conventional 100,000-unit EUR/USD lot, one pip has a $10 value. An adverse 30-pip move therefore produces $300 of price loss before separately charged costs. Changing the leverage input from 30 to 20 changes the simplified margin above, but this $300 calculation stays the same because position units and price movement did not change. Reducing the number of units would change both quantities.
Understand why a stop and margin closeout can differ
The account’s unrealized P&L, equity and other positions influence whether it can maintain required margin. A broker may close positions according to account-level rules rather than your planned exit. A normal stop is also an execution instruction rather than a guaranteed fill price: gaps and slippage can create a different result. This page deliberately does not supply a universal margin-call threshold, because provider and account rules differ.
Read the result as a model, not permission
The margin calculator estimates a single position with flat leverage. It does not model portfolio offsets, maintenance requirements, hedging treatments, liquidation paths or every broker tier. The position-size calculator answers the separate budget-and-stop question. Neither tool establishes maximum loss, available execution, account eligibility or whether trading is suitable for you. Check the applicable provider documentation before using a modeled number in any real decision.
Sources and conventions
Examples are hypothetical. Arithmetic follows the formulas documented in our methodology. Broker contract specifications determine actual lot, margin and execution conditions. These sources document definitions and data; a source link does not imply endorsement of SanForex or a trading service.
These materials are prepared with AI assistance and checked against worked examples and deterministic calculation tests where applicable. They are not an expert suitability assessment or investment advice.
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