A Forex Margin Calculator is a very practical currency exchange tool that assists you in managing your trades as well as your level of risk, by computing the margin needed in order to hold open positions. In order to comprehend the purpose of a Forex Margin Calculator, one must first understand the significance of the margin. A margin is the necessary equity which must be placed by the investing party so that it can provide collateral for a certain position.
Thus, the Forex Margin Calculator calculates the amount of currency you should buy or sell once you input the appropriate data, which includes - amount of capital, amount of margin used and the amount of equity you are willing to risk on your currency exchange.