- The margin level is a risk management indicator that helps you understand the influence of the currently opened positions on your account.
- Margin level is a mathematical equation that effectively tells the trader how much of their funds are available for new trades.
- The higher the margin level, the higher the amount of cash available to trade.
- The lower the margin level, the lower the amount of cash available to trade, and this is where an account could be subject to a margin call.
How is margin level calculated?
It is calculated with the following formula:
Margin level = equity/margin x 100%
If you don't have any trades open, your margin level will be zero. Once a position is opened, the margin level will depend on several factors such as:
- Volume
- Type of market
- Leverage
- Margin level example
The xStation platform automatically calculates your margin level and you can view it at the bottom of your screen.

Source: xStation
In the example above, the margin level is calculated in the following way:
Margin level = 103490.38/2500 x 100% = 4139.62%