Margin Level: Definition and Calculation Guide
Margin Level is a key metric in trading that reflects the status of your account. It represents the ratio of your account equity to the used margin, stated as a percentage. A higher margin level indicates a safer position, while a lower margin level may signal potential risks of margin calls or stop-outs.
The Margin Level is calculated using the following formula:
Margin Level = (Equity/Used Margin) * 100%
- Equity is the total funds of your account, including your deposits, credits and any unrealized profits or losses from open positions.
- Used Margin is the amount of margin currently being used to maintain your open positions.