Margin level

Margin level is the single number that tells you how close an account is to having positions closed. Platforms such as MetaTrader show it in the account summary:

Margin level = equity divided by used margin, times 100

Equity is your balance plus or minus the floating gain or loss on open trades. Used margin is the total the broker has set aside to keep those trades open. With no open positions, margin level is blank, because there is nothing to divide by.

Example

Illustrative figures: balance 8,000 euros, open trades using 2,000 euros of margin and showing a floating loss of 1,000 euros.

• Equity = 8,000 minus 1,000 = 7,000 euros
• Margin level = 7,000 divided by 2,000 = 350%

If the losses grow to 7,000 euros, equity is 1,000 euros and margin level is 50%. For EU and UK retail clients, that is the margin close-out point, and the broker starts closing positions. Many brokers send a margin call warning earlier, often at 100%.

Practical notes

• Opening another trade raises used margin, so margin level falls instantly even before price moves.
• Closing a losing trade releases margin; closing a winning one removes equity that was propping up the others.
• A high margin level does not mean low risk. An account at 1,000% can still lose a large share of its value on a single trade if the position size is big relative to the stop distance.

Our guide to margin calls and stop-outs has a full worked sequence, and the margin calculator shows how much margin a trade will use before you open it.