Margin is the amount of money (a.k.a. collateral ) locked in a trader’s account to open a trade.
The higher the leverage, the less margin is required and locked in a trader’s account.
Margin Level is the ratio of a trader’s equity to the Used Margin. It is displayed as a percentage and shows whether there is enough funds to open new trades or maintain existing positions.
It can be calculated using the following formula:
Margin Level = Equity / Used Margin × 100%
Equity = Balance ± Profit (Loss) on Open Positions
Margin level | Account status |
| >100% | Normal |
| <=100% | Margin call |
<=50% | Stop out |