Forex glossary
Margin Level
Margin level is equity divided by used margin times 100%, where used margin is positive. It compares capital with required collateral. Warning and close-out thresholds are separate account rules; if used margin is zero, this ratio is undefined.
Illustrative example
How does it work in practice?
In a hypothetical account, equity is 900 USD and margin is 600 USD. Margin level is 900/600 × 100% = 150%; compare it with the account's separate thresholds rather than a universal limit.
One account, four different figures
Balance, equity and available collateral
Model with no credit, fees or blocked amounts: balance 10,000 USD, open P/L −800 USD and used margin 2,000 USD.
On a narrow screen, the table can be scrolled horizontally.
| Term | What it describes | Shared example |
|---|---|---|
| Balance | Booked funds; open P/L does not change balance in this model. | Balance remains 10,000 USD. |
| Equity | Current account value; margin is not deducted from it. | 10,000 − 800 = 9,200 USD. |
| Margin (deposit margin) | Required collateral, rather than a fee already paid. | The positions require 2,000 USD of collateral. |
| Free margin (available margin) | Equity minus margin; not the same as withdrawable cash. | 9,200 − 2,000 = 7,200 USD. |
| Margin Level | Equity relative to margin, expressed as a percentage. | 9,200 / 2,000 × 100% = 460%. |
Takeaway: Identify whether a figure is a booked amount, account valuation, collateral requirement or ratio. Do not deduct margin from equity.
Change an assumption, see the result
What changes if…?
Change equity and positive margin while observing their ratio. Also check zero margin: the ratio has no defined value in that case.
Model: equity = balance + open P/L; free margin = equity − margin. No credit, fees or other blocks. The stop-out threshold is hypothetical; the actual formula and action depend on the provider’s terms.
Check your understanding
Calculate the ratio with the correct denominator and separate a percentage from a cash amount.
Show the answer and explanation
150%.
900 / 600 × 100% = 150%. Compare it separately with the account’s threshold rules.
Read the account and its margin thresholds
Step 6 / 8 · 0 / 8 reviewed
View the full sequence →Progress is saved only in this browser.
Try the numbers in a calculator →
Read the fuller explanation
Related terms
Sources and documentation
- MetaTrader 5: executing trades
Execution modes, requotes, position handling and local trailing on this platform.
Document read: - MQL5 Reference: Account Properties
Account properties distinguish equity and margin values and separate margin-call and stop-out thresholds expressed in percentages or deposit currency.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.