# Calculate the margin

#### How do I calculate the margin?

The figure below shows the leverage information for the major currency pairs of ADSS Assuming that the current EUR/USD bid price is 1.2000, I want to buy 120 lots of EUR/USD, how much margin do I need to pay?

Step 1:
Calculate the volume of EUR/USD for 120 lots

• Volume calculation formula: number of lots traded x contract units x current exchange rate
• Bring into formula: 120 lots x 100,000 USD x 1.2 = 14,400,000 USD

Step 2:
After looking at the leverage information table, we know that the leverage for the first 10,000,000 trading volumes is 500, and the leverage for the remaining 4,400,000 trading volumes is 200.

Step 3:
Calculate the margin required for the first 10,000,000 trading volumes at 500 times leverage

• Margin calculation formula: volume (i.e. number of trades x contract units x current exchange rate).
• Bring in Formula: \$10,000,000 / 500 = 20,000USD.

Step 4:
Calculate the margin required for the remaining 4,400,000 trading volumes under the leverage of 200 times.

• Bring in Formula: \$4,400,000 / 200 = 22,000 USD

A sum of 20,000 USD and \$22,000 is equal to \$42,000, which is the margin requirement for buying 120 lots of EUR/USD and the actual funds required to conduct this transaction.