What is Margin Level?

What is Margin Level?

The Margin Level is the ratio of the equity to the Margin Used in currently open positions. It is expressed as a percentage:

Margin Level = (Equity/Margin Used) * 100
The Margin Level is a gauge that measures how “fit” your trading account is.
The higher the Margin Level, the “healthier” your trading account is.
For example, a Margin Level of 500% means that you still have available funds to open new positions or maintain existing ones.
On the other hand, a Margin Level equal to 100% indicates that the Margin Used in open positions is equal to the Equity of the trading account.
Similarly, a Margin Level of less than 100% implies that you have multiple open and most probably losing positions.
This is a red-flag warning!

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