Margin Level is calculated using the following formula:
Margin Level = (Equity / Margin) x 100%
- Equity: The total value of your trading account, including any unrealized profits or losses from open positions.
- Margin: The amount of funds required to maintain your open positions.
Example:
If your Equity is $1,000 and your Margin is $500:
Margin Level = ($1,000 / $500) x 100% = 200%
Stop Out:
When an account's Margin Level reaches or drops below 50%, it gets stopped out, meaning your positions will be automatically closed by the system to prevent further losses.
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