Margin level is a percentage that reflects the relationship between your equity and the margin used by your open positions. It helps you assess whether your account is in a safe zone or at risk of a margin call.
The margin level provides critical insight into your account’s health. A low margin level can trigger margin calls, leading to automatic liquidation of positions to cover losses. A high margin level means you have more capital available to handle market fluctuations.
For example, if your equity is $1,500 and you have used $500 in margin for open positions, your margin level is 300% ($1,500 ÷ $500 × 100). A margin level of 100% or lower usually indicates a margin call is imminent.
Test your knowledge of margin level in forex trading with the following questions:
