Is there a calculator to find out how many lots you can purchase maximum depending on the leverage and the money in your account? I tried to search but only found calculators where you enter your desired risk and it finds out how many lots you SHOULD purchase maximum. That doesn’t help me. I want to know theoretical maximums.
Try this one. Forex Money Management
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Hmm that seems great but the Margin part which is what I wanted to use doesn’t seem to work. It just always says $0.
There is no online calculator for that purpose that I’m aware of. However…
The [B]short[/B] answer to your question is this:
Multiply the leverage associated with your account by the balance in your account
and you will have the “theoretical maximum” trade size possible,
[I]stated in terms of “notional value” in the currency in which your account is denominated.[/I]
Writing this as a formula —
[B]Maximum theoretical trade size = maximum allowable leverage x account balance[/B]
[U]Example[/U]:
Let’s say your broker offers you [I]maximum allowable leverage[/I] of 50:1 (in other words, this is the leverage associated with your account), and let’s say you have 1,000 USD in your account.
Applying the formula above, $1,000 x 50 = $50,000. This is the “theoretical maximum” position size possible, stated in terms of [I]notional value[/I], in the currency in which your account is denominated.
If that “short” answer didn’t satisfy you, then fasten your seatbelt — because here comes the long answer.
The formula above gives you the [I]notional value,[/I] in units of XXX, of the maximum position you can enter, where XXX is the currency in which your account is denominated (your account currency). This currency (XXX) may or may not be the base currency in the pair that you intend to trade; and an exact determination of the maximum theoretical position size for this pair will depend on whether it is.
• Referring again to the example above (in the “short” answer), if the pair being traded has the USD as its base currency (that is, if the pair is of the form USD/XXX, where XXX can be any other currency), then the formula gives the correct [I]notional value[/I] ($50,000) for the theoretical maximum trade size. The [I]notional amount[/I] (that is, how many units of the pair being traded) corresponding to this notional value will be 50,000 units of USD/XXX. And, in terms of [I]lots,[/I] this obviously will be 0.5 standard lots (or 5 mini-lots, or 50 micro-lots, or 500 nano-lots).
• If the pair you are trading [I]does not[/I] have the USD as its base currency, then you will have to do an additional calculation in order to determine how many units of the base currency of your pair are equivalent to $50,000, based on current exchange rates.
Calculating a “theoretical maximum” trade size in this way requires two assumptions about your broker’s terms and conditions.
• First, it requires the assumption that your broker calculates [I]required margin[/I] as a fixed percentage of the [I]notional value[/I] of your trade at the moment when your trade is placed. For example, let’s say your broker offers you 50:1 [I]maximum allowable leverage;[/I] this means that [I]required margin[/I] to open a position will be 2% of the [I]notional value[/I] of that position, calculated at the time the position is opened.
Obviously, because the prices of currency pairs fluctuate constantly, the exact [I]notional value[/I] of a trade will fluctuate, and therefore 2% of that [I]notional value[/I] will fluctuate from moment to moment. This adds an element of uncertainty to just what the [I]required margin[/I] will be for any particular trade, at the moment that the trade is entered.
To remove this uncertainty, many brokers establish a [I]fixed required margin[/I] which is applied to all trades in a particular pair, so long as the price of the pair is within a particular band. Since regulators specify [U]minimum allowable[/U] required margins (2% is the legal [U]minimum[/U] in the U.S.), the effect of “banding” the required margins is that the effective margin imposed on each trade is 2% [I]or more.[/I] This banding is not accounted for in the simplified calculations of maximum theoretical position size, given above.
• The second assumption about the way your broker calculates margins is this: Required margin is actually required [I]initial[/I] margin, and applies only to initially opening a particular trade. After the trade has been opened, a different (lower) margin — the so-called [I]maintenance margin[/I] — applies to the trade. Most brokers operate this way. You can find out exactly what margins your particular broker requires on open positions by consulting the Terms and Conditions associated with your account.
The reason that this assumption applies to our calculations of maximum theoretical position size is this: As soon as you open a position, your [I]P/L[/I] on that position becomes negative, because of the spread on the pair you are trading. If every penny of your account balance is tied up in [I]required margin,[/I] and if this margin amount is not immediately reduced as soon as you open your position, then the “loss” resulting from the spread will trigger an immediate [I]margin call,[/I] closing your position.
I can only guess what you intend to do with this information.
If you simply want to know how things work, I can relate to that.
On the other hand, if you intend to enter a “maximum theoretical” position, just to see what will happen, I suggest you do it in a demo account. And, as a valuable exercise, before you enter such a position, calculate the effect that a 10-pip, or 20-pip, or 30-pip, move against you would have on your position.
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Since its that complicated I would suggest a calculator was very much in need.
You shouldn’t be trading your maximum allowance anyway 
Nobody said I was. I just want to know how to calculate it.
You can use a margin Calculator to do this. For example before opening any trade, I use my broker’s margin calculator (Trading Strategy Calculator - Profiforex Forex Broker). Now as you can see there is the option to select your leverage and the option to select your lot size and number of positions. Choosing the currency pair you want to trade you can determine the margin required to open 1 position with the lowest lot size. Now continue to increase your lot size having your account balance in view. I think this will help you determine the maximum lot size you can use with your capital in view.
You hit the nail on the head! That’s exactly what I’ve been looking for. It really does exist.
Attached.
After applying to your chart it will give you max lot size depending on your leverage. You can also type in the shaded box your desired lot size & it will calculate margin required. etc etc