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margin level indicates the health of your account it is the ratio of equity to margin used for your open positions and indicated as a percentage itamp;#39;s easily calculated with the following formula letamp;#39;s take a look at an example say a trader has the following equity and used $1,000 worth of margin as we can see this traders account is still very healthy a basic rule of thumb is the higher the margin level the less possible it is for the trader to face a stop out next up weamp;#39;ll be looking at margin call
