What are the benefits of a margin calculator?

A margin calculator offers several benefits for traders using leveraged financial products:

1. Enables better capital efficiency: By providing quick margin calculations, it allows determining the possible funds that can be utilised based on current account equity and margin requirements. This helps traders optimise their capital usage.
2. Supports effective risk management: By determining the margin impact beforehand, traders can evaluate if the positions being considered fit their risk appetite and margin limits.
3. Simplifies comparisons: Margin requirements can be easily compared across different trading instruments using a calculator.
4. Reduces manual work: Automated and real-time margin calculations save significant time versus manual spreadsheets.
5. Provides flexibility: Calculators allow input of different account sizes, leverage amounts and position sizing to assess multiple scenarios.