What Does Margin Level Mean in MT4?

Margin level is the single most important number on a leveraged trading account because it determines when the platform stops the trader from opening new positions and when it begins to close existing ones automatically. It is shown in the MT4 and MT5 terminal as a percentage, alongside balance, equity, used margin and free margin, and it updates continuously as prices move.

This guide explains what margin level is, how it is calculated, what the margin call and stop-out thresholds are at TIOmarkets, what happens when margin level drops, and how to monitor and manage it during active trading.

What Is Margin Level?

Margin level is the ratio of a trading account's equity to the margin currently held against open positions, expressed as a percentage. A high margin level means the account has plenty of equity relative to the margin tied up in positions. A low margin level means the cushion is thin and any further loss in open positions could trigger an automatic intervention by the platform.

When there are no open positions, no margin is used, and margin level is undefined. MT4 and MT5 typically display nothing, a dash, or zero in this case. The value only takes on practical meaning when there are open positions consuming margin.

The Margin Level Formula

Margin level is calculated as:

Margin Level = (Equity / Used Margin) x 100

To take a worked example, suppose an account has an equity of USD 2,000 and the open positions are using USD 500 of margin. Margin level is (2,000 / 500) x 100 = 400%. The account has four times as much equity as margin used.

If the open positions move USD 1,000 against the trader, equity drops to USD 1,000 and margin level becomes (1,000 / 500) x 100 = 200%. The account is still well above the margin call threshold but the cushion has been cut in half.

If the loss continues and equity drops to USD 500, margin level is (500 / 500) x 100 = 100%. This is the margin call threshold at TIOmarkets. Continued losses below this take margin level into territory where the platform may start to close positions automatically.

Margin Call and Stop-Out at TIOmarkets

Two margin level thresholds matter at TIOmarkets.

The margin call level is 100% across all account types. At this level, the trader cannot open new positions that would require additional margin, and the platform may issue a notification that the account is close to the stop-out level. Existing positions remain open at this point.

The stop-out level is 30% across all account types. When margin level reaches the stop-out level, the platform begins to close open positions automatically to bring margin level back above 30%. Positions are closed one at a time, with the platform selecting positions according to its internal logic, until margin level recovers.

There is one exception. The margin stop-out level for accounts using 1:2000 leverage is 40%, not 30%. The 1:2000 leverage tier can apply on the Standard account at certain equity levels under the unlimited leverage feature, so traders using that feature should be aware of the higher stop-out threshold.

Margin call and stop-out levels are subject to change depending on market conditions and applicable regulatory requirements. Up to date thresholds are documented on the accounts page.

What Happens When Margin Level Drops

A falling margin level is the result of one or both of these.

Equity is decreasing. This happens when open positions are moving against the trader and the unrealised loss is growing.

Used margin has increased. This happens when the trader has opened new positions, scaled into existing ones, or when margin requirements on an instrument have changed.

As margin level falls towards the margin call threshold of 100%, the available free margin shrinks. Free margin (Equity minus Used Margin) is the figure used to open new positions, so as it approaches zero the ability to add to the account or take new trades disappears.

Reaching the stop-out level triggers automatic position closure. The platform closes open positions one at a time to bring margin level back above the stop-out threshold. This is a platform-level safety mechanism designed to prevent the account from going significantly negative on a leveraged loss.

A position closed by a stop-out is realised at the prevailing market price, which may differ from the price at the moment the stop-out was triggered due to slippage in fast-moving markets.

How to Monitor and Manage Margin Level

Margin level is the figure to watch during volatile periods or when holding multiple positions through scheduled news events.

Sizing positions conservatively in advance is the most effective way to keep margin level safe. Smaller positions use less margin and leave more cushion before the stop-out threshold becomes a concern. The Margin Calculator shows how much margin will be required for a given lot size on a given instrument.

Closing or reducing losing positions raises margin level. This is the most direct way to add cushion when margin level is approaching a threshold.

Depositing additional funds raises balance and therefore equity, which raises margin level. This is an option but should not be relied on as a primary risk-management tool. Adding funds to defend a losing trade can compound losses rather than resolve them.

Avoiding or reducing exposure across multiple correlated positions can also help. Several positions in the same direction on highly correlated instruments produce concentrated risk that can take down margin level very quickly when the correlation breaks against the trader.

Where to See Margin Level on MT4 and MT5

Margin level appears in the Trade tab of the Terminal window on MetaTrader 4 (Ctrl+T) or the Toolbox window on MetaTrader 5, alongside balance, equity, used margin and free margin. The value updates continuously while open positions are active.

On mobile and web platforms, margin level is shown in the Trade tab or account summary screen of the app.

When there are no open positions, no margin is used and the margin level value is typically blank, a dash or zero, depending on the platform version.

Trading at TIOmarkets

Trading at TIOmarkets is available on both MetaTrader 4 and MetaTrader 5, across desktop, web and mobile. The Standard account is created automatically on registration, with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. All accounts support hedging. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5, allowing followers to copy strategy providers in real time.

Spreads are variable and are typically higher than minimum figures shown. Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Margin requirements vary by instrument and are subject to change depending on market conditions and applicable regulatory requirements.