- What is Margin Level?

Margin Level = (Net Collateral Value/Reserved Margin) * 100%

Put simply, Margin Level indicates how “healthy” your trading account is. It is the ratio of your Net Collateral Value to the Reserved Margin of your open positions, indicated as a percentage. As a formula, Margin Level looks like this: (Net Collateral Value/Reserved Margin) * 100%. Let’s say your have a Net Collateral Value of $5,000 and has used up $1,000 of margin. Your margin level, in this case, would be ($5,000/$1,000) X 100 = 500%. This is considered to be a very healthy account! A good way of knowing whether your account is healthy or not is by making sure that your Margin Level is always above 100%.

We will send you margin call by email and text message when the margin level has fallen below 150% (the Margin Call Level). It is a warning that you are in danger of the POSSIBILITY of having some or all of your positions forcibly closed, you need to be alert when receiving a margin call. You can close some of your positions or add funds to raise the margin level.

When the margin level has reached 50% (the Stop Out Level), some or all of your positions will be forcibly closed.