What margin level means
Margin level is a reading of how much room your account has before the broker starts acting on your open positions. It compares what your account is worth right now with the money locked as collateral for your trades.
Two terms come first:
- Equity is your balance plus or minus the profit or loss of all open trades. It changes with every price tick. See Equity vs balance.
- Used margin is the money the broker sets aside to keep your positions open. It depends on position size and leverage. See What is margin.
A high margin level means equity is large compared with the margin in use, so there is a bigger buffer. A low margin level means losses have eaten into that buffer.
Margin level formula
Margin level = equity ÷ used margin, shown as a percentage.
The platform calculates it for you. In MetaTrader 4 and MetaTrader 5 it appears in the Trade tab next to balance, equity, margin and free margin. If you have no open positions, used margin is zero and the platform shows no margin level.
To see the result with your own figures, enter your balance, position size, leverage and entry price in the calculator below. It shows your margin level and the prices at which margin call and stop out would happen.
Fill in the empty fields to see the result.
Margin level = equity / used margin × 100%. Equity falls with the floating loss; the price for a level L solves balance + P/L = L × margin. Margin is taken at the entry price. In a gap the position can close at a worse price.
How margin level falls as losses grow
Used margin stays fixed for a position once it is open. Equity does not. When the market moves against you:
- The floating loss grows.
- Equity falls by the same amount.
- Used margin stays the same, so equity ÷ used margin gets smaller.
- Margin level drops, and keeps dropping as long as the loss grows.
Opening more positions also lowers margin level, because used margin rises while equity stays the same. Closing positions or adding funds raises it.
Try this in the calculator: keep the inputs the same and move only the current price against your position. Margin level falls step by step. Then raise the leverage or the lot size and compare. Larger positions reach the warning levels after a smaller price move.
Margin call and stop out thresholds
Brokers set two levels on the margin level scale:
- Margin call level. When margin level falls to this point, the broker warns you that your buffer is thin. Positions usually stay open, but you may not be able to open new ones. See Margin call.
- Stop out level. When margin level falls to this lower point, the broker starts closing your positions automatically, usually the one with the largest loss first, until margin level is back above the threshold. See Stop out.
These levels differ between brokers and between account types, so there is no universal figure. If you trade with Exness, check the current margin call and stop out levels for your account type in the Exness personal area or on the official site.
Stop out does not protect your balance at a fixed price. In fast markets or across price gaps, positions can close at worse prices than expected because of slippage.
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For experienced traders: precise points
- Equity includes swap and commission. Accrued swap and charged commission change equity, so they move margin level even when price does not.
- Hedged positions. Some platforms calculate reduced margin for opposite positions on the same symbol. Margin level then depends on how the broker counts hedged margin.
- Margin can change. Some brokers raise margin requirements around news, weekends or for certain instruments. Higher used margin lowers margin level without any price move.
- Account currency. Used margin is converted into the account currency, so for cross pairs the conversion rate also affects the figure. See Cross rates.
- Price used. Floating profit and loss is calculated at the closing side of the quote, so a wider spread lowers equity and margin level slightly. See Bid and ask.
Is there a "good margin level"?
No single figure suits every trader. A higher margin level means a market move must be larger before margin call or stop out is reached. The practical question is how far price can move against your positions before stop out. The calculator answers that for your inputs.
Smaller position sizes, lower effective leverage and a stop loss keep margin level higher during losses. These limit risk but do not remove it. Leveraged forex and CFD trading can lose money fast, including your whole deposit. More on this in Risk management.
Frequent questions
What is margin level in simple words?
It shows how your current account value compares with the money locked for your open trades. The lower it is, the closer you are to margin call and stop out.
How do I calculate margin level?
Divide equity by used margin and express the result as a percentage. Your trading platform shows it, and the calculator on this page shows it for any inputs you enter.
Why does my margin level drop when I have not opened new trades?
Floating losses, swap charges or higher margin requirements reduce equity or raise used margin. Any of these lowers margin level.
What happens when margin level reaches the stop out level?
The broker closes positions automatically, usually starting with the largest loss, until margin level is back above the threshold.
Can I practise watching margin level without risking money?
Yes. A demo account shows the same margin readings on live prices with virtual funds.