Definition

Margin level

Margin level is the percentage (equity ÷ used margin × 100) a broker uses to decide when an account is too stretched to keep its positions open.

It falls when equity drops (losing trades) or when used margin rises (more or larger positions). A high percentage means plenty of headroom; a low one means the collateral is nearly exhausted.

Below the broker's stop-out level, positions are force-closed automatically.

Margin level and the stop-out, explained →Margin level calculator →

Related terms

Margin call — A margin call is the warning level at which a broker stops you opening new positions and expects you to add funds or reduce risk.
Stop-out — A stop-out is the level at which a broker begins force-closing an account's positions — typically the largest losing one first — to protect the account.
Equity — Equity is an account's balance adjusted for the profit or loss on open positions (and any swap or fees) — the account's live value right now.
Leverage — Leverage is the ratio between an account's position size and the capital backing it — higher leverage means a given price move changes equity by more.

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