What is margin level?
Margin level is your equity divided by your used margin, multiplied by 100 and shown as a percentage. It tells you how much cushion your open trades have. At 100%, equity equals used margin and free margin is zero. Brokers set their margin call and stop out levels on this number, and the levels differ between brokers.
هذا المحتوى متاح حاليًا باللغة الإنجليزية فقط.
Open a trade and your platform shows a new figure next to your equity: margin level, written as a percentage. Your broker watches this number to decide when to warn you and when to close your trades.
With $1,000 of equity and $440 of margin held for your trades, the margin level is about 227%. Your equity covers the margin more than twice over.
What does margin level measure?
Margin level compares two numbers from earlier lessons. Equity is your balance plus or minus the floating profit or loss of open trades. Used margin is the deposit your broker holds while those trades stay open.
Margin level is equity divided by used margin, multiplied by 100. It says how many times your equity covers the margin your trades need, written as a percentage.
A high number means a large cushion. A number close to 100% means your equity barely covers the margin.
At exactly 100%, equity equals used margin, so free margin is zero and you have nothing left to open another trade with. Below 100%, free margin turns negative.
With no open trades, used margin is zero and the formula has nothing to divide by. Platforms such as MetaTrader then leave the margin level field empty.
How do you calculate margin level?
The formula is short:
Margin level = (equity ÷ used margin) × 100
Here is a worked example with round illustrative numbers. It ignores the spread and any fees so the arithmetic stays clean.
- You have a $1,000 balance, no open trades and account leverage of 1:100.
- You buy 0.40 lot of EUR/USD at 1.10000. One standard lot is 100,000 euros, so 0.40 lot is 40,000 euros.
- The position's value in dollars is 40,000 × 1.10000 = $44,000.
- At 1:100, used margin is $44,000 ÷ 100 = $440.
- Price has not moved yet, so equity is still $1,000.
- Margin level = 1,000 ÷ 440 × 100 = 227.27%.
Your platform does this sum live, and the margin calculator shows the used margin before you place a trade. Knowing the sum yourself lets you predict where the figure will sit after a move.
What happens to margin level when price moves?
In this example the used margin stays at $440 while the trade is open. Equity changes with every tick, so the margin level changes with it.
One standard lot of EUR/USD is worth $10 a pip, so 0.40 lot is worth $4 a pip. Every pip against you takes $4 off your equity and pulls the margin level down.
| EUR/USD price | Pips against you | Loss | Equity | Free margin | Margin level |
|---|---|---|---|---|---|
| 1.10000 | 0 | $0 | $1,000 | $560 | 227.27% |
| 1.09000 | 100 | $400 | $600 | $160 | 136.36% |
| 1.08600 | 140 | $560 | $440 | $0 | 100.00% |
| 1.08050 | 195 | $780 | $220 | minus $220 | 50.00% |
You can also work backwards. For the 100% point, you need equity of $440, which means a loss of $1,000 minus $440 = $560.
Divide that loss by the pip value: $560 ÷ $4 = 140 pips, a price of 1.08600. The 50% point works the same way. Equity of $220 means a loss of $780, and $780 ÷ $4 = 195 pips, a price of 1.08050.
Some platforms recalculate used margin as EUR/USD moves, because the margin is set in euros and converted into dollars. That shifts the figures a little. The example holds used margin at $440 to keep the steps easy to follow.
What else changes your margin level?
Anything that changes equity or used margin moves the figure, and price is only one of those inputs.
Opening more trades
Say you buy a second 0.40 lot of EUR/USD at the same 1.10000. Used margin doubles to $880, while equity stays at $1,000.
Margin level falls to 1,000 ÷ 880 × 100 = 113.64%. With 0.80 lot open, each pip is worth $8, so a loss of $120, only 15 pips, takes the level to 100%.
Closing trades and moving money
Closing a trade releases its margin. Its floating result moves into your balance, so equity stays where it was while used margin drops. If other trades remain open, the margin level rises.
A deposit raises equity directly. With the single 0.40 lot trade open, adding $500 lifts the level from 227.27% to 1,500 ÷ 440 × 100 = 340.91%. A withdrawal does the reverse.
Commissions come out of equity too. Swap can be a charge or a credit, so a trade held for many nights can slowly move your margin level even while price stays flat.
Changing leverage
Leverage sets how much margin a position needs. At 1:500, the same 0.40 lot needs $44,000 ÷ 500 = $88, and margin level starts at 1,000 ÷ 88 × 100 = 1,136.36%.
The trade still gains or loses $4 a pip. A 50% stop out would now wait until equity fell to $44, a loss of $956 or 239 pips, compared with $780 or 195 pips at 1:100.
The bigger starting figure means the trade can run further against you before a stop out, so more of the account can be lost when it finally happens.
How do brokers use margin level?
Your broker sets thresholds on this scale, usually two of them. At the margin call level, the platform warns you, often by turning the figure red or sending a message.
The stop out level sits lower. There the broker starts closing your trades, usually beginning with the one losing the most, until the margin level is back above the threshold.
The 100% and 50% in this lesson are examples. Brokers choose their own numbers, which can differ by account type, as the lesson on why levels differ between brokers explains. Check your account terms to find yours.
A stop out closes trades at the next available price. In a fast market or across a weekend gap, that price can be worse than the threshold, so the real loss can exceed the table above.
The next lesson covers what a margin call is, and the one after explains the stop out level.
أسئلة شائعة
What is a good margin level in forex?
There is no single safe number. A higher figure means more room before a margin call, and the room you need depends on how far price could move against you, so measure it in pips as the worked example does.
What does a margin level of 100% mean?
Your equity equals your used margin and your free margin is zero, so you cannot open new trades. At a broker whose margin call level is 100%, the warning starts here.
Why is my margin level blank?
You have no open trades, so used margin is zero and there is nothing to divide by. The figure appears once you open a position.
Does higher leverage increase margin level?
For the same position, yes, because the used margin is smaller. Your loss per pip stays the same, so the account can lose more before a stop out.
Can margin level fall below the stop out level?
Yes, when price jumps past the threshold before the broker can close your trades. Weekend gaps and fast moves around news are the usual causes.
تابع التعلّم
الفصل 6What is margin trading?Margin trading means opening a position worth more than the money in your account. The broker sets aside part of your balance, the margin, as a deposit while the trade is open. Profit and loss are counted on the full position size, so small price moves change your balance much faster than the margin suggests.
الفصل 6What is account balance in forex?Your account balance is the money in your trading account from deposits, withdrawals and closed trades, after booked costs such as commission and swap. It does not include open positions. While a trade is open the balance stays the same, and the floating profit or loss shows up in your equity instead.
الفصل 6What is floating (unrealized) profit and loss?Floating profit and loss is the result your open trades would show if you closed them at the current price. It changes with every tick and moves your equity, while your balance stays the same. It becomes realized, and is added to or taken from your balance, only when the trade closes.
الفصل 6ما هو الهامش ومستوى الهامش والإغلاق القسري في الفوركس؟الهامش هو جزء من أموالك تحجزه شركة الوساطة وديعةً طوال فترة فتح صفقة بالرافعة المالية. ومستوى الهامش هو حقوق الملكية مقسومة على الهامش المستخدم، مضروبة في 100%. وعندما ينخفض إلى مستوى نداء الهامش لدى شركة الوساطة يُوضع على حسابك تنبيه، وعند مستوى الإغلاق القسري تبدأ شركة الوساطة في إغلاق مراكزك تلقائيًا.
الفصل 6What is used margin?Used margin is the total amount your broker sets aside to keep all your open positions open. Each position's margin is its notional value divided by your leverage, and used margin adds them up. It is not a fee: the money returns to free margin when you close the trades.
الفصل 6What is equity in a trading account?Equity is your account balance plus or minus the floating profit or loss of your open trades. It shows what the account would be worth if you closed everything at current prices. With no trades open, equity equals balance. Brokers use it to work out free margin, margin level and stop outs.
الفصل 6What is free margin?Free margin is the money in your trading account that is not locked up as margin for open trades. It equals equity minus used margin. You need free margin to open new positions, and it falls as open trades lose and rises as they gain. At zero, your margin level is 100%.
الفصل 6What is a margin call?A margin call is your broker's warning that your margin level, equity divided by used margin, has fallen to a set threshold such as 100%. You usually cannot open new trades from that point. The call closes nothing by itself. If losses continue, the broker's stop out level is where positions start to be closed for you.
الفصل 6What is a stop out level?The stop out level is the margin level at which your broker starts closing your open positions automatically, often beginning with the largest loss. If your stop out level is 50%, closing begins when equity falls to half your used margin. It is meant to stop your account sinking further, though a price gap can still push it below zero.
الفصل 6Margin call example: margin call at 100% with no separate stop out.When a broker sets the margin call and the stop out both at 100%, the warning and the forced close happen at the same moment. In this example, a $1,000 account buys 0.50 lot of EUR/USD with $550 of margin at 1:100, and the trade is closed after a 90 pip fall, a $450 loss.
الفصل 6Margin call and stop out example: 100% and 50%.In this example a $2,000 account buys 1 lot of EUR/USD at 1.10000 with $1,100 of used margin. The margin call at 100% arrives when equity falls to $1,100, 90 pips lower at 1.09100. The stop out at 50% closes the trade when equity reaches $550, at 1.08550, a loss of $1,450.
الفصل 6What happens if you trade forex with $100?With $100 and 1:100 leverage, 0.01 lot of EUR/USD at 1.10000 uses $11 of margin and can move about 890 pips against you before a 100% margin call. At 0.05 lot the margin call comes after 90 pips, and 0.10 lot cannot be opened at all. Trade size decides how much room you have.
الفصل 6Why margin call and stop out levels differ between brokers.Margin call and stop out levels are set by each broker, often per account type, within any rules from the regulator that licenses the account. In this lesson's example, one trade is closed after 90 pips at one broker and after 178 pips at another, so look up your own levels before you trade.
الفصل 6ما هي الرافعة المالية في الفوركس؟تتيح لك الرافعة المالية التحكم في مركز أكبر بكثير من إيداعك. فعند رافعة 1:100، يتحكم كل $1 من الهامش في $100 من العملة، لذا يحتاج مركز قيمته $110,000 إلى $1,100. وتحدد الرافعة مقدار الهامش المحجوز، لا قيمة النقطة. أما خطرك الحقيقي فيأتي من حجم المركز الذي تختاره.
الفصل 6Margin cheat sheet.Balance is the cash from deposits, withdrawals and closed trades. Equity is balance plus the floating profit or loss on open trades. Used margin is the deposit your open trades hold, and free margin is equity minus used margin. Margin level is equity divided by used margin, times 100. A margin call warns; a stop out closes trades.
الفصل 6How can you avoid a margin call?Margin level is your equity divided by your used margin, and a margin call comes when it falls to your broker's threshold. To stay clear, keep positions small compared with your equity, set stop losses that close losing trades long before that point, and leave plenty of free margin unused.
