If the Margin Requirement Rate is shown as a percentage, how much leverage does it represent?

Review Trading Terms

Margin and Leverage

This article was :

Published in 2025.03.19

Updated in 2025.04.09

Here is how you can calculate leverage from the Margin Requirement Rate (%), or the Margin Requirement Rate (%) from leverage.

How to calculate leverage from the Margin Requirement Rate (%)

Leverage can be calculated using the following formula.

Leverage = 100 ÷ Margin Requirement Rate (%)

Here are some specific examples of the calculation:

If the Margin Requirement Rate is 5%：100 ÷ 5 = x20

If the Margin Requirement Rate is 2%：100 ÷ 2 = x50

If the Margin Requirement Rate is 0.5%：100 ÷ 0.5 = x200

The Margin Requirement Rate can be calculated using the following formula.

Margin Requirement Rate (%) = 100 ÷ Leverage

Here are some specific examples of the calculation:

If the leverage is 20x：100 ÷ 20 = 5%

If the leverage is 50x：100 ÷ 50 = 2%

If the leverage is 200x：100 ÷ 200 = 0.5%

Key Point

For Forex Pairs (excluding exotic pairs) and metal CFD, leverage will vary based on the equity.

Please refer to the following article for detailed information regarding leverage.

0 out of 0 people found this article helpful.