Margin level and stop-out calculator
Margin level shows how healthy an account with open trades is. When it falls to the broker's margin-call or stop-out level, you get a warning and then trades are closed for you.
How to use it
- Read equity and used margin from your trading platform (MT4 / MT5: the Trade tab).
- Enter your broker's margin-call and stop-out levels (often 100 % and 50 %).
- Add the pip value of your open trades to see how many pips against you the account can take.
Worked example
Equity 1,000 USD, used margin 400 USD: level = 1,000 ÷ 400 × 100 = 250 %. With a 50 % stop out the account can lose 1,000 − 200 = 800 USD; at 5 USD per pip that is 160 pips.
The formula
Margin level = equity ÷ used margin × 100; loss before stop out = equity − used margin × stop-out %
Questions
What is a good margin level?
Far above the stop out: many traders keep it above 500 %, which means using only a small part of the balance as margin.
What happens at stop out?
The broker closes trades, usually the biggest loser first, until the level is back above the stop-out level.
Does a stop loss help?
Yes. A stop loss closes the trade at your level long before the broker's stop out would.
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