MT5 margin level explained: formula, margin call and stop out
Margin level tells you how much room your account has before positions are closed. How it is calculated, where to find it and what it does not tell you.
What margin level is
Margin level is the figure in MetaTrader 5 that tells you how much room your account has before the broker starts closing positions. It is calculated as equity divided by used margin, shown as a percentage: margin level = equity / margin x 100. A higher number means more room. A lower number means less. When you have no open positions there is no margin in use, so the field is empty.
You will find it on the account line at the top of the Trade tab in the Toolbox (press Ctrl+T if the Toolbox is hidden), next to Balance, Equity, Margin and Free Margin. The terminal recalculates it as prices move, which is why it can change many times a minute while you hold a trade.
The four numbers behind it
| Field | What it is | How it moves |
|---|---|---|
| Balance | Your deposits plus the results of closed trades | Changes only when a trade closes or money moves in or out |
| Equity | Balance plus the floating profit or loss of open positions | Changes with every price tick while you hold a trade |
| Margin | The amount the broker holds back to keep your open positions | Changes when you open, add to or close positions, or when leverage or the price changes |
| Free margin | Equity minus margin: what is left to open new trades | Falls as you add positions or as floating losses grow |
| Margin level | Equity divided by margin, as a percentage | Falls when equity falls or when more margin is used |
The balance is the quiet number and the equity is the honest one. If you hold a losing trade, the balance still shows the old figure while the equity already shows the damage. See MT5 balance vs equity for how the two drift apart.
A worked example (hypothetical numbers)
Take an account with a $5,000 balance and 1:100 leverage. You buy 1.00 lot of EURUSD at 1.0850. The notional value is 100,000 x 1.0850 = $108,500, so the margin is about $1,085. Right after opening, with no floating profit or loss, equity is $5,000, free margin is $3,915 and margin level is 5,000 / 1,085 = about 461%.
| Floating result | Equity | Margin | Free margin | Margin level |
|---|---|---|---|---|
| $0 | $5,000 | $1,085 | $3,915 | 461% |
| -$1,500 | $3,500 | $1,085 | $2,415 | 323% |
| -$3,000 | $2,000 | $1,085 | $915 | 184% |
| -$4,457.50 | $542.50 | $1,085 | -$542.50 | 50% |
The last row is the point at which a broker with a 50% stop-out level would begin closing positions. The numbers are invented and ignore spread, swap and any change in the margin requirement, but they show the shape: the margin stays put while the equity melts, and the margin level falls with it. Notice also that the account could not have survived that loss by waiting. By the time the margin level is low, the free margin is already gone.
Margin call and stop out
Brokers define two thresholds on the margin level. They are set by the broker, not by MetaTrader, and they differ between brokers, account types and sometimes instruments.
- Margin call level. A warning level. Below it the broker may notify you, restrict new positions or both. Some brokers use a figure well above 100% and others a lower one.
- Stop-out level. The level at which the broker starts closing positions automatically, usually the one with the largest loss first, until the margin level recovers. A stop-out figure of 50% or lower is common for retail accounts, but yours may be different.
Do not take a number from this page. Open the contract specification of your own account type, or your broker’s support page, and write the real figures into your trading plan. A trader who thinks the stop-out is at 20% when it is at 50% has half the room they believe.
Why margin level is not your risk limit
It is tempting to treat a margin level of 300% as safe. It is not a risk measure. A position can sit at a comfortable margin level and still lose far more than you meant to risk, because the stop-out only protects the broker from your losses going below zero. It does nothing to protect your plan.
- Risk per trade comes first. Size by the distance to your stop and the amount you accept losing. The position size calculator does that arithmetic.
- Margin is a ceiling, not a target. It tells you the most the broker will let you open, which is usually far more than a sensible plan would use. The margin calculator shows what a given size locks up.
- Prop firm rules are different. Many firms use their own drawdown rules, measured on balance or equity, long before any broker stop-out. See balance-based vs equity drawdown.
What to watch in practice
- Margin level trending down while you add to a loser. Each added position raises the margin and also the exposure. This is how an account that looked fine can be stopped out in a single move.
- News and weekend gaps. Price can jump past your stop. The margin level can fall faster than you can react.
- Different instruments, different margin. Gold, indices and crypto CFDs often require a larger share of the notional value than major forex pairs. Check the specification before you size.
- Leverage changes. Some brokers reduce leverage on certain instruments around events or on large positions, which raises the margin and lowers the margin level without any price move.
What a journal can and cannot tell you about it
A stop-out is visible afterwards: the closed trade appears in your History with a broker comment that usually says so (see MT5 history comments: sl, tp and so). What a journal built from closed trades cannot show is how close you came. AI Trading Journal reads closed positions from your MetaTrader 5 history, so it does not record the margin level, the floating profit and loss of open trades or the moment-by-moment equity. If you want to log your margin level at entry as a habit, write it in the notes field of the Journal page next to the setup and the reason for the trade. Over a few weeks that note tells you whether your worst losses came at the times your margin level was already low.
The same closed-trade view gives you the cost side: whether stop-out trades appear in your results, how large they were, and how they compare with trades that hit your own stop. That is the data that changes behaviour. The dashboard guide shows what the numbers look like once the journal is filled.
Honest limits
- The formula is the common one, equity divided by margin. Brokers can add their own rules, such as different handling of credit or bonus funds, so check your account.
- Menus and labels differ slightly between builds and brokers. If you cannot find a field, right-click the Trade tab or check your broker’s guide.
- The example uses invented numbers and a simplified margin of $1,085. Your margin depends on your leverage, instrument and account currency.
- This is an explanation of how a platform works, not trading or financial advice.
Next in the chain: MT5 stop out and margin call explained, with a worked example and how a forced close appears in your history.
Frequently asked questions
How is margin level calculated in MT5?
What is a good margin level?
Where do I see margin level in MetaTrader 5?
What is the stop-out level?
Does AI Trading Journal record my margin level?
Related guides
- A local trading journal for MT5
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- Trading progress and goals
- Back up your journal and move it to a new PC
- An offline trading journal for Windows
- How to set monthly trading goals
- Import your whole MT5 history
- How to tag trades
- Trade screenshots for your journal
- All trading journal comparisons
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