What Is Margin Level?
Margin level is a ratio that shows how healthy an account is: equity divided by used margin, times 100%.
Explained
The higher the margin level, the further the account is from danger. Each broker sets a margin-call level and a lower stop-out level, both stated in its terms.
Example
Example with made-up numbersEquity is 2,000 dollars and used margin 300 dollars, so the margin level is 2,000 ÷ 300 × 100% ≈ 667%.
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Open in JoymistaEducational content, not investment advice.