How much does trading on margin amplify my loss on a losing trade?
Enter Your Trade
Your Result
Fill in the fields on the left and click Calculate to see how much leverage amplifies your dollar loss on this trade.
How this is calculated
Position size equals your account equity multiplied by the leverage multiplier you enter.
Dollar loss at this leverage equals position size multiplied by the adverse price move you enter.
Loss with no leverage is your account equity multiplied by the same adverse price move, so you can see the difference leverage alone makes.
Loss as a percent of your account equity is your leveraged dollar loss divided by your equity. This is the number that matters most: leverage doesn't just multiply your position, it multiplies how fast a normal price move can eat through your account.
The "move that wipes out 100% of equity" figure is a theoretical reference point, not a prediction. It ignores margin interest and the fact that most brokers issue a margin call well before you reach a full equity wipeout. Exact margin call thresholds and interest rates vary by broker and are not modeled here.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Trading on margin increases both potential gains and potential losses, and you can lose more than your original account equity. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Margin requirements, interest rates, and margin call policies vary by broker. Always confirm your broker's specific margin terms and consult a licensed professional before trading with leverage.
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