Margin level is a relation of Margin to Equity expressed in per cent.
Margin level (in %) = (Equity / Margin) * 100
This indicator shows how high the deposit utilization rate is and what dip it can take.
Margin level is displayed on the platforms in line with major account metrics.
Example:
We calculate the margin level for the EUR/USD deal, the trading volume is 0,5 lot with $10,00 of equity. For the calculation, we need to know the Margin for this deal (see Margin). The margin equals $500.
We substitute the values in the formula:
(10,000 / 500) * 100 = 2000.
We found out that if there is an order with such an input, the Margin level for this account will equal 2000%.