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Margin Level = (Equity / Margin) * 100%

Margin Level



Margin Level is the ratio of equity to use margin, expressed as a percentage. This level is calculated as follows: margin level = (equity / margin) * 100%. That is, Margin Level is calculated by dividing the current equity in the account at the current amount of used margin. After dividing the equity on the margins, carried two decimal places to the right. The trader, using the equity in the 2000 Euros and 1000 Euros uses as margin, must divide 2000 to 1000, which will result in 2. After the move to 2 decimal places to the right, the current margin level will be 200. At the level of margin in one hundred percent, the trader uses margin initially available. When the level reaches a certain value set by the broker, any transactions entered into the trader will be closed to prevent further losses. In such cases, for continuation of trade trader needs to replenish his deposit.

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