Fill in the empty fields to see the result.
Effective leverage = total position value / equity. It, not the account setting, decides how fast the account moves: at 10× a 1% move changes equity by 10%. Set volume to 0 to drop a position.
What this forex leverage calculator shows
Leverage lets you control a position larger than the money in your account. Brokers show it as a ratio, the account leverage setting. That setting is a ceiling. It tells you how large your positions can be for the margin you post. It does not tell you how large they are.
Effective leverage measures how much exposure you actually hold. The tool adds up the value of all open positions and divides that total by your equity. The result is visible next to the inputs, so when you change a lot size or the equity figure you see the new value straight away.
The fields come pre-filled with neutral sample values. Replace them with your own figures. The sample values are not a suggestion for how to size a trade.
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The formula
Effective leverage = total position value ÷ equity
- Position value (notional): lot size × contract size × current price, converted into your account currency. For a currency pair, the contract size of a standard lot is set by the broker's contract specification.
- Total position value: the sum of the notional value of every open position. The tool counts buys and sells as exposure, so a sell adds to the total just as a buy does.
- Equity: balance plus or minus floating profit and loss on open trades. Use equity, not balance, because equity is what stands behind your positions right now.
The formula is also shown under the tool, and every example result on this page comes from the tool itself.
How to calculate leverage step by step
- Enter your equity in your account currency.
- Add each open position: instrument, lot size, contract size and price.
- If a position is quoted in another currency, enter the conversion rate. You can use the currency converter for this.
- Read the effective leverage figure and compare it with your account leverage setting.
Why effective leverage and account leverage differ
The account leverage setting controls the margin you need, meaning the deposit the broker holds to keep a position open. Effective leverage controls how fast your equity moves when the price moves.
Here is how they relate:
| What you look at | What it tells you |
|---|---|
| Account leverage | How little margin a position needs |
| Effective leverage | How much a price move changes your equity |
| Free margin | How much room is left before new trades are blocked |
| Margin level | How close the account is to margin call and stop-out |
When effective leverage rises, a small price move against you becomes a large share of your equity. If equity falls far enough, the broker can close positions automatically at stop-out. You can see how this plays out in the margin call simulator, and you can find the margin for a single trade with the margin calculator.
Risk note
Leveraged forex and CFD trading can lose money fast, including the whole deposit. A low effective leverage figure does not make a trade safe, and a high figure does not mean a trade will fail. The calculator only measures exposure. To size positions by the amount you are prepared to lose, use the lot size calculator and read risk management. Before you open any account, check the legal position in Pakistan on regulation and safety.
Frequent questions
What is an effective leverage calculator?
It divides the total value of your open positions by your equity. The result shows the leverage you are actually using, not the maximum your account allows.
Is effective leverage the same as the leverage I chose on my account?
No. The account setting is a limit that sets your margin requirement. Effective leverage depends on how large your open positions are compared with your equity.
Should I use balance or equity?
Use equity. It includes floating profit and loss, so it shows what is actually backing your positions.
Do hedged positions cancel out?
In this tool, each position adds its notional value to the total. Your broker may calculate margin on hedged positions differently, so check its contract specification.
Does a lower account leverage setting reduce my risk?
It raises the margin each position needs, so you can open less exposure. Your risk still depends on position size and price moves, which is what effective leverage measures.