How Is the Margin Level Calculated?
The margin level is typically calculated as the ratio of the equity in the margin account to the used margin (the amount of margin currently securing open positions), often expressed as a percentage. Equity is the account balance plus or minus the unrealized profit or loss of all open positions.
The formula is: Margin Level = (Equity / Used Margin) x 100%. This level is continuously monitored by the exchange to determine if the account is approaching the maintenance margin threshold.
