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	<title>Comments on: How Margin Level Is Calculated</title>
	<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/</link>
	<description>An adventure in currency trading</description>
	<pubDate>Tue, 16 Mar 2010 06:23:49 +0000</pubDate>
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	<item>
		<title>By: admin</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1724</link>
		<author>admin</author>
		<pubDate>Thu, 24 Sep 2009 19:11:43 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1724</guid>
		<description>That level is set by your broker's MT4 server I believe. Are you holding on to large positions (relative to your account balance) when you get this warning? If so it's a sign you're taking on too much risk - ie trading with lot sizes that are too large thus using up too much of your available margin.</description>
		<content:encoded><![CDATA[<p>That level is set by your broker&#8217;s MT4 server I believe. Are you holding on to large positions (relative to your account balance) when you get this warning? If so it&#8217;s a sign you&#8217;re taking on too much risk - ie trading with lot sizes that are too large thus using up too much of your available margin.</p>
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		<title>By: Peter</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1723</link>
		<author>Peter</author>
		<pubDate>Thu, 24 Sep 2009 16:59:08 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1723</guid>
		<description>Why is it that Metatrader gives a warning by a pink color of the margin band when margin drops below 125%.
I have much more money in the account, so don't understand how the program can start giving me warnings</description>
		<content:encoded><![CDATA[<p>Why is it that Metatrader gives a warning by a pink color of the margin band when margin drops below 125%.<br />
I have much more money in the account, so don&#8217;t understand how the program can start giving me warnings</p>
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	<item>
		<title>By: admin</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1678</link>
		<author>admin</author>
		<pubDate>Thu, 10 Sep 2009 17:39:23 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1678</guid>
		<description>Because you will be over-leveraged that way. The higher the leverage the higher the value of the position relative to your account balance and thus the market only has to move a little bit against you and you account would get a margin call. 

Yes equity is a totally different concept. Equity is just the current value of your account (balance + current open trades). When the equity is higher than account balance you're in profit :) - ie your account size has increased. 

High margin level is a different thing. I think what you're doing is confusing terms. 

A high margin level means you have a high level of margin FREE or AVAILABLE to be used. By high margin level percent zulutrade means to say that that your account is using up too much of your available margin. Thus the key is to make sure you don't overload your account and keep the margin level at a reasonable 5-20% The lower the value the less risk you're taking on.

Play it safe - especially if you're playing with real money.</description>
		<content:encoded><![CDATA[<p>Because you will be over-leveraged that way. The higher the leverage the higher the value of the position relative to your account balance and thus the market only has to move a little bit against you and you account would get a margin call. </p>
<p>Yes equity is a totally different concept. Equity is just the current value of your account (balance + current open trades). When the equity is higher than account balance you&#8217;re in profit <img src='http://alansforexblog.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> - ie your account size has increased. </p>
<p>High margin level is a different thing. I think what you&#8217;re doing is confusing terms. </p>
<p>A high margin level means you have a high level of margin FREE or AVAILABLE to be used. By high margin level percent zulutrade means to say that that your account is using up too much of your available margin. Thus the key is to make sure you don&#8217;t overload your account and keep the margin level at a reasonable 5-20% The lower the value the less risk you&#8217;re taking on.</p>
<p>Play it safe - especially if you&#8217;re playing with real money.</p>
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		<title>By: diego</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1675</link>
		<author>diego</author>
		<pubDate>Thu, 10 Sep 2009 15:54:35 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-1675</guid>
		<description>Why a high 'Margin Level percent' is dangerus?. 

On ZuluTrade.com a message tell me: A High Margil Level is dangerous becouse it may become a Margil Call.

But if Equity is High, its better I think

(equity = balance + current earnings)

and so, a High Margin Level Percetn is very good.

Wath do you think?

greetings
diego</description>
		<content:encoded><![CDATA[<p>Why a high &#8216;Margin Level percent&#8217; is dangerus?. </p>
<p>On ZuluTrade.com a message tell me: A High Margil Level is dangerous becouse it may become a Margil Call.</p>
<p>But if Equity is High, its better I think</p>
<p>(equity = balance + current earnings)</p>
<p>and so, a High Margin Level Percetn is very good.</p>
<p>Wath do you think?</p>
<p>greetings<br />
diego</p>
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		<title>By: admin</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-804</link>
		<author>admin</author>
		<pubDate>Wed, 26 Nov 2008 06:12:32 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-804</guid>
		<description>That is absolutely correct! Treat your margin with respect and do not over leverage your account! 

In forex money management is the one crucial factor that will determine whether you're going to become a successful trader. 

I recommend that you not let your margin level percentage drop below 1000%</description>
		<content:encoded><![CDATA[<p>That is absolutely correct! Treat your margin with respect and do not over leverage your account! </p>
<p>In forex money management is the one crucial factor that will determine whether you&#8217;re going to become a successful trader. </p>
<p>I recommend that you not let your margin level percentage drop below 1000%</p>
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		<title>By: Rosdi</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-803</link>
		<author>Rosdi</author>
		<pubDate>Wed, 26 Nov 2008 04:43:19 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-803</guid>
		<description>Thanks!.. that helps a lot. So now I know I should not let my margin level drop too low. Correct?</description>
		<content:encoded><![CDATA[<p>Thanks!.. that helps a lot. So now I know I should not let my margin level drop too low. Correct?</p>
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	<item>
		<title>By: How Margin Level Is Calculated &#183; Forex-Trading.ExplainedOnline.Net</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-638</link>
		<author>How Margin Level Is Calculated &#183; Forex-Trading.ExplainedOnline.Net</author>
		<pubDate>Sat, 25 Oct 2008 04:29:53 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-638</guid>
		<description>[...] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [&#8230;]</p>
]]></content:encoded>
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	<item>
		<title>By: How Margin Level Is Calculated &#183; Trade-Forex.ExplainedHere.Net</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-637</link>
		<author>How Margin Level Is Calculated &#183; Trade-Forex.ExplainedHere.Net</author>
		<pubDate>Sat, 25 Oct 2008 04:23:08 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-637</guid>
		<description>[...] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [&#8230;]</p>
]]></content:encoded>
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		<title>By: How Margin Level Is Calculated &#183; Forex-Trade.ExplainedOnline.Net</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-636</link>
		<author>How Margin Level Is Calculated &#183; Forex-Trade.ExplainedOnline.Net</author>
		<pubDate>Sat, 25 Oct 2008 04:09:42 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-636</guid>
		<description>[...] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [&#8230;]</p>
]]></content:encoded>
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	<item>
		<title>By: How Margin Level Is Calculated &#183; Forex.ExplainedOnline.Net</title>
		<link>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-635</link>
		<author>How Margin Level Is Calculated &#183; Forex.ExplainedOnline.Net</author>
		<pubDate>Sat, 25 Oct 2008 04:00:39 +0000</pubDate>
		<guid>http://alansforexblog.com/2008/10/25/how-margin-level-is-calculated/#comment-635</guid>
		<description>[...] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Original post by Alan&#8217;s Forex Blog - An Adventure In Currency Trading [&#8230;]</p>
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