Margin = (contract size × price) / leverage. Example: 1 lot EURUSD at 1.10 with 1:500 leverage = (100,000 × 1.10) / 500 = $220 margin required.
Direct answer
Initial margin at XM is the deposit you must hold against an open position. The formula is universal across most retail brokers: contract size in base-currency units multiplied by current price, divided by your account leverage. The result is denominated in the quote currency and converted to your account currency where needed.
Worked examples
| Trade | Calc | Margin |
|---|---|---|
| 1 lot EURUSD @ 1.10, lev 1:500 | (100,000 × 1.10) / 500 | $220 |
| 0.1 lot EURUSD @ 1.10, lev 1:1000 | (10,000 × 1.10) / 1000 | $11 |
| 1 lot XAUUSD @ 2,300, lev 1:500 | (100 × 2,300) / 500 | $460 |
| 1 lot US30 @ 38,000, lev 1:200 | (1 × 38,000) / 200 | $190 |
Where to see it on MT4/MT5
Open the order ticket and the “Margin Required” line shows the figure for the size you select. The Trade tab shows used margin against equity, and Free Margin = equity − used margin.
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FAQ
How is margin per lot calculated at XM?
Margin = (contract size × price) / leverage. Example: 1 lot EURUSD at 1.10 with 1:500 leverage = (100,000 × 1.10) / 500 = $220 margin required.
Does hedged margin still apply?
On hedging accounts, opposing positions on the same instrument can be margin-offset; XM applies the larger leg's margin while both legs remain open.
Why does margin change with price?
Because the formula is contract-value-based. As price moves, contract value moves, and required margin tracks it.
Related XM guides
- What is XM’s maximum leverage?
- What is XM’s stop-out level?
- Can you actually trade with XM?
- Does XM allow hedging?
- XM MT4 and MT5 Guide