Margin level=(net value/used margin) x 100%

=Margin level%

Example:

The net asset in an account holding 1 USD/JPY is $10000, with a leverage of 100 times its margin, calculated as follows:

=(10000/1000) x 100%

=1000% (margin level)

If the value of your securities drops to $5000:

=(5000/1000) x 100%

=500% (margin level)

When the market continues to operate, your account will be liquidated due to your net assets dropping to $799. This is because your margin level is 79.9%, which is lower than the specified 80%.

=(799/1000) x 100%

=79.9% (margin level)