Trade Calculator
Leverage Calculator
Understand your leverage exposure and calculate your effective leverage ratio.
$
Effective Leverage
1:10.8
High Risk
Multiplier
10.8x
Notional
$108,500
1% Move
$1085
Use this result in your trading workflow
Log the result and compare it against the trades you actually take.
How to Use This Calculator
1
Enter your account balance — Your total account equity.
2
Enter lot size — The position size you plan to trade.
3
Select currency pair — To determine the notional trade value.
4
Enter current price — The pair's current market price.
5
Review effective leverage — See your actual leverage ratio and risk level.
What is Leverage in Forex?
Leverage allows you to control a large position with a small amount of capital. A 1:100 leverage means $1,000 controls a $100,000 position.
Effective leverage is the actual ratio between your total open position size and your account equity. This is different from your broker's maximum leverage.
Understanding your effective leverage is crucial — even with 1:500 broker leverage, if your positions total 5x your equity, your effective leverage is only 1:5.
Key Features
Account balance input
Position size input
Notional value display
Effective leverage ratio
Risk level indicator
Multiple pair support
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Compounding
Project your account growth with compound returns over time.
Position Size
Calculate optimal lot size based on your risk percentage and stop loss distance.
Risk/Reward
Visualize and calculate risk-to-reward ratios for your trade setups.
Frequently Asked Questions
Broker leverage is the maximum allowed. Effective leverage is what you're actually using. If your broker offers 1:500 but you only open positions worth 10x your equity, your effective leverage is 1:10.
Most professionals use effective leverage between 1:1 and 1:10. Above 1:20 is considered high risk. Above 1:50 is extremely dangerous for most traders.
Leverage doesn't change pip value directly — it changes how many lots you can open. More lots = higher pip value per trade = more risk.