Margin level shows how much equity you have compared to the margin being used to keep your positions open. It helps you understand how close your account is to a margin call or stop out.
Margin level formula
Margin Level (%) = (Equity ÷ Used Margin) × 100
What do the terms mean?
Equity = Balance + Floating profit/loss
Used Margin = Margin currently locked to keep open positions
Simple example
Account balance: $1,000
Floating loss: –$200
Equity = $800
Used margin = $400
Margin level calculation:
(800 ÷ 400) × 100 = 200%
Why is margin level important?
If margin level falls, your account is at higher risk
A margin call may occur when margin level drops to a certain level
A stop out happens if margin level falls further and positions are closed automatically
(Margin call and stop-out levels depend on your account type and trading conditions.)