Free tool
Margin level calculator
Free margin level calculator: see your equity, margin level and free margin, and how many pips price can move before a margin call or stop-out.
Quick answer: margin level = equity ÷ margin used × 100. With a $5,000 balance, a $400 open loss and $3,616.67 of margin used, equity is $4,600 and the margin level is 127.2%. Brokers often warn at 100%; in the UK and EU, retail positions are closed at 50%.
Margin level
- Equity
- Margin used
- Free margin
- Room to margin call
- Room to stop-out
Illustrative prices. Type your platform's live price. Pips assume your open trades are this one position and that the margin stays fixed; real platforms recalculate it as the price moves.
How it's calculated
Your equity is your balance plus or minus the profit or loss on open trades. The margin level compares it with the margin your positions have locked. The free margin is what is left over.
Equity = balance + floating P/L · Margin level = equity ÷ margin used × 100 · Room to a level = equity − margin used × level
Worked example
You have a $5,000 account and buy 1 lot of EUR/USD at 1.0850 with 1:30 leverage. The margin used is $108,500 ÷ 30 = $3,616.67. The trade is $400 down, so equity is $4,600 and the margin level is $4,600 ÷ $3,616.67 = 127.2%. Free margin is $4,600 − $3,616.67 = $983.33.
With a margin call at 100%, the room is $983.33. At $10 a pip that is about 98 pips. The 50% stop-out comes when equity falls to $1,808.33, so the room is $4,600 − $1,808.33 = $2,791.67, or about 279 pips. On a $5,000 account, that is a loss of more than half the balance before the broker steps in.
Common mistakes
- Watching the balance instead of equity. The balance does not change until a trade closes. The margin call and stop-out are based on equity.
- Forgetting that all trades share one pool. Every open position adds to the margin used, and a loss on any of them lowers the margin level for all. Positions that move together act like one big trade.
- Assuming the stop-out level is the same everywhere. UK and EU retail accounts close at 50%. Brokers regulated elsewhere set their own, sometimes lower, levels. Check your account terms.
Want to know the margin before you open a trade? Use the margin calculator.
Frequently asked questions
What happens at a margin call?
A margin call is a warning. When your margin level falls to the broker’s call level, often 100%, you cannot open new trades and the platform tells you that your equity is running low. Nothing is closed yet, but the room before the stop-out is shrinking.
What happens at the stop-out?
At the stop-out level the broker starts closing your positions, usually the biggest loser first, until the margin level is back above the line. In the UK and the EU, brokers must close retail positions when equity falls to 50% of the margin used. The fills are at market prices, so in a fast market the loss can be larger than the arithmetic suggests.
Is free margin the same as the room before a margin call?
Only when the margin call level is 100%. Free margin is equity minus margin used, which is exactly the loss that takes you to a 100% margin level. If your broker calls at 120% or 80%, the room is smaller or larger than the free margin, which is why the calculator shows both.
How do I raise my margin level?
Close or reduce positions, which lowers the margin used, or open smaller trades in the first place. Depositing more money also raises it, but adding money to keep a losing trade alive is a decision to make calmly, not under pressure from a margin call.