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Margin Level

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  • 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.

Margin Level

Source: xStation

In the example above, the margin level is calculated in the following way:

Margin level = 103490.38/2500 x 100% = 4139.62%

ZERO COMMISSION FOR STOCKS AND ETFS INVESTING

*For monthly turnover up to 100,000 EUR (then comm. 0.2%, min. 10 EUR). 0.5% currency conversion cost may apply. The financial instruments we offer are risky. Invest responsibly.

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