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Margin level is your equity divided by the margin in use, shown as a percentage. At 100% your equity only just covers your open trades. Brokers send a margin call below a set level and close trades at the stop-out level.
Margin level equals equity divided by used margin, times 100. With $1,000 of equity and $367 of used margin, the margin level is 272%. As losses reduce equity, the number falls. With $367 of equity it is 100%. With $184 it is 50%.
You open two mini lots of GBP/USD on a $1,000 account at 30:1, locking about $840 of margin. Margin level starts at 119%. The pair falls 40 pips, an $80 loss. Equity is $920 and margin level is 110%. Another 60 pips and equity is $800, margin level 95%. Most brokers send a margin call at 100%. In the EU, the UK and Australia the broker must close trades once the level hits 50%, which here means a loss of about $580 from a $1,000 account.
ESMA, the FCA and ASIC set the retail stop out at 50% of the margin required. Offshore brokers pick their own level. Some use 50%, some 30%, some 20%, which means the account can lose more before the broker steps in. The client agreement states the number.
See free margin, the other figure your platform shows next to this one, and leverage for the caps that decide how fast margin level moves.
There is no fixed answer, but many traders keep it above 300% so one bad day cannot trigger a stop out. A level near 100% means one more adverse move will close trades.
With EU, UK and Australian brokers the broker closes your worst-performing trade, and more if needed, until the level is back above 50%.
Sources: ESMA product intervention measures, 2018. FCA PS19/18. ASIC product intervention order, 2021. Checked 25 September 2026.
Risk warning: trading forex and CFDs on margin carries a high risk of losing money. Most retail accounts lose money. Never trade with money you cannot afford to lose.