The formula for calculating the margin of a currency pair is: lot size * contract size / leverage multiple, and the unit of currency depends on the base currency.
Taking EUR/USD as an example, the contract volume is 100,000 EUR and the leverage is 500 times, then the margin for 1 lot of EUR/USD is:
- 1 * 100,000 / 500 = EUR 200
It is worth noting that since the calculation result of the margin is based on the base currency, which will be converted into USD quotations on the trading software, the margin will vary according to the exchange rate fluctuations between the base currency and the USD.