Margin level

Margin level is the ratio of your equity to your used margin, as a percentage. It is what triggers the margin call and the stop out.

The formula is simple: margin level = equity ÷ used margin × 100. With no open position, it is not calculated. With positions open, it is the number to watch.

The higher it is, the more cushion you have. As it falls, your positions are eating into your capital. Each broker sets a margin call level (often 100%) and then a stop out level. For retail clients under ESMA and FCA rules, positions must be closed at the latest when this level reaches 50%.

If you need to check this number every hour, your position size is probably too large.

The full lessonMargin, margin call and stop out: what happens when your position losesUsed margin, free margin, margin level, margin call and stop out explained step by step, with a worked EUR/USD example to help you avoid being liquidated.