📉 Why Margin Level Is More Important Than Leverage
🎯 The Lesson
Most traders obsess over leverage —
“1:100, 1:500, 1:1000… which one is best?”
But professionals don’t think like that.
They don’t blow accounts because of leverage.
They blow accounts because they mismanage margin level.
Margin level tells you how close you are to liquidation.
Ignore it — and your account will vanish long before your strategy fails.
⚙️ Step 1: What Is Margin Level?
Margin Level = (Equity ÷ Used Margin) × 100
It shows how safe your account is.
Higher = safer.
Lower = danger.
Example:
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Equity: $1,000
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Used margin: $200
Margin level = 500%
This is safe.
You have room for trades and market movement.
💣 Step 2: What Happens When Margin Level Falls?
Every broker has a “margin call level” and a “stop-out level.”
Example:
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Margin call: 100%
-
Stop-out: 50%
If your margin level hits 100%, you can’t open new trades.
If it hits 50%, the broker starts force-closing positions —
not your stop loss, not your plan — the broker decides.
That’s how accounts blow up without warning.
📊 Step 3: Leverage Doesn’t Kill You — Low Margin Level Does
Two traders, same account size, same trade:
Trader A – safe
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Leverage: 1:100
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Position size: 0.05 lot
Margin level stays above 400–600%
Trader B – dangerous
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Leverage: 1:500
-
Position size: 0.50 lot
Margin level drops to 120%
Even a 20–30 pip move against Trader B can trigger a stop-out.
Not because the market is wild —
but because margin level was too low.
🧮 Step 4: How to Stay Safe (Pro Rules)
Keep your margin level:
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Above 500% = very safe
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300–500% = acceptable
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200–300% = risky
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Below 200% = dangerous
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Below 100% = margin call zone
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Below 50% = forced liquidation
Pros stay above 500% at all times.
🔢 Step 5: Use Micro-Lots to Stay Alive
The easiest way to protect margin level is to reduce position size, not leverage.
Leverage only gives you potential.
Position size controls your risk.
Example:
Instead of 0.20 lot on a $500 account → use 0.02 lot.
Margin level stays high, risk stays low, and you survive volatility.
🚀 Takeaway
Leverage opens the door.
Margin level tells you whether you’ll stay inside — or get thrown out.
Forget the hype around high leverage.
Watch your margin level, keep it high, and you’ll trade with stability, confidence, and zero fear of forced liquidation.
📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
