Position and Lot Size Risk Calculator
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Leveraged Position Margin and Profit Calculator
Calculate the margin and price-based profit or loss of a linear position from your contract details. This does not calculate liquidation prices, inverse contracts or cross-margin exposure.
Your numbers
How the calculation works
A linear leveraged position separates exposure from the cash margin used to support it. Profit depends on the underlying quantity and price movement, while the leverage multiple determines the modelled initial margin and therefore the percentage return on that margin.
Notional = quantity × contract multiplier × entry price. Margin = notional ÷ leverage. Linear P&L = direction × underlying units × price change − fees − funding.
Calculate economic exposure
Multiply contract count by units per contract and the entry price. This produces entry notional, rather than the cash deposited as margin.
Estimate initial margin
Divide notional by the entered leverage multiple. The calculation does not model maintenance margin or a broker's changing margin schedule.
Calculate net position profit
Apply the signed price change to the underlying units, then deduct trading fees and funding. Divide by initial margin for the separate margin-return percentage.
Worked example: Check Profit or loss
Sample inputs demonstrate the method. They are not a forecast or product offer.
The first example holds ten units long from 100 to 110 with no costs. Profit is ten times the price rise, or 100; five-times leverage affects the margin calculation, not that price profit.
- Number of contracts or units
- 10
- Underlying units per contract
- 1
- Entry price
- 100
- Exit price
- 110
- Leverage multiple
- 5
- Direction
- Long
- Total trading fees
- 0
- Funding cost (negative for a credit)
- 0
- Currency for all amounts
- Euro (EUR)
Expected result
- Profit or loss
- €100.00
Worked example: Check Profit or loss
Sample inputs demonstrate the method. They are not a forecast or product offer.
- Number of contracts or units
- 10
- Underlying units per contract
- 1
- Entry price
- 100
- Exit price
- 110
- Leverage multiple
- 5
- Direction
- Short
- Total trading fees
- 5
- Funding cost (negative for a credit)
- 5
- Currency for all amounts
- Euro (EUR)
Expected result
- Profit or loss
- -€110.00
Understanding your result
Increasing leverage for a fixed quantity reduces modelled margin but leaves its price-based profit unchanged. Increasing the quantity at the same time changes exposure and is a different scenario.
A negative result is a modelled loss, not a liquidation threshold or maximum possible loss. Gaps, slippage and broker close-out rules are not simulated.
Questions you might have
What does the result include?
Estimate initial margin and profit or loss for a linear leveraged position with known prices and contract size.
Which limits should I check?
All amounts use the quote currency. Leverage changes margin, not the price-based P&L of a fixed position.
Choosing the right inputs
- Underlying units per contract
- Enter the underlying units represented by one contract. Setting this incorrectly scales both exposure and price-based profit.
- Direction
- Choose long for a position that benefits from a price rise or short for one that benefits from a price fall.
- Funding cost (negative for a credit)
- Enter the total funding cost over the holding period. A negative value represents a credit, rather than an additional trading fee.
Common mistakes to avoid
- Do not multiply profit by leverage again after already using the full underlying quantity.
- Inverse contracts and cross-margin portfolios do not follow this linear payoff model.
Assumptions to check
- All amounts use the quote currency. Leverage changes margin, not the price-based P&L of a fixed position.
- All calculations run on your device. Figures are scenarios based on your inputs, not investment recommendations.
Sources and method
Read our calculation and testing approach.