The ratio of your equity to your used margin, expressed as a percentage — the broker's measure of how close you are to a margin call.
Margin level is calculated as (equity / used margin) × 100. A margin level of 1000% means your equity is 10x your used margin — plenty of buffer. A margin level of 200% means your equity is only 2x your used margin — you're at risk. A margin level below 100% means your equity is less than your used margin, which triggers a margin call.
Most brokers set a stop-out level around 50%-100%. Once your margin level drops below that threshold, the broker starts auto-closing your positions to recover the margin. You don't get a warning — the closeout just happens.
Margin level is the most important real-time risk metric. Pros keep it above 500% at all times. If yours drops below 300%, you're already in dangerous territory and need to either close positions or add funds.
Hundreds of retail traders lost their entire accounts during the Aug 2024 yen unwind because they had margin level below 200% on USD/JPY longs. The broker's stop-out system liquidated everything within minutes of the gap.
Frequently asked about margin level
What is a margin level in trading?+
The ratio of your equity to your used margin, expressed as a percentage — the broker's measure of how close you are to a margin call.
When will I see margin level used in real trading?+
On every broker dashboard. The single most important number when running multiple positions.
What is the most common mistake traders make with margin level?+
Ignoring margin level until it's too late. By the time you're at 150%, the broker is about to close everything. Watch margin level constantly when running multiple trades.
What do experienced traders know about margin level that beginners don't?+
Set an alert on your platform for margin level below 500%. That gives you early warning to close losers or hedge before the broker forces the issue.
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