Margin level is a key metric that shows the health of your trading account and indicates how much of your funds are available to open or maintain positions. It is expressed as a percentage and calculated using the formula:
Margin Level (%) = (Equity / Used Margin) × 100
- Equity is your account balance plus or minus any unrealised profits or losses from open positions.
- Used Margin is the total amount required to keep your current positions open.
A higher margin level indicates that your account has more free funds relative to your open positions, while a lower margin level increases the risk of a margin call or stop-out. Monitoring your margin level helps you manage risk and avoid automatic position closures.
