The Margin Level is an essential notion in forex trading. It's simply a percentage (%) figure calculated by dividing the amount of Equity by the amount of Used Margin. The Margin Level can be accepted as an indicator of how much of your money is available for new deals. The following is the margin-level formula: (Equity / Used Margin) * 100 = Forex Margin Level.
Brokers utilize margin levels to decide whether or not Forex traders may open new positions. A Forex margin level of 100% indicates that the account equity is equal to the utilized margin. This typically indicates that the broker will not enable you to make any more transactions on your account unless you deposit more money or your unrealized earnings rise. If you don’t have any trades open, your Margin Level will be zero. Many forex brokers need a 100% minimum maintenance margin level.