In short. Margin is the collateral the broker locks for an open position. Leverage reduces that collateral but not the risk: the loss depends on volume and the distance to the stop. The key number is the margin level = equity / margin × 100%. When it falls to the margin call level, the broker asks you to top up; at the stop out level the server closes positions by itself, starting with the most losing one. Terms and formulas follow the MetaTrader 5 help as of 13 October 2026.
Five account numbers
They are at the bottom of the «Trade» tab in the Toolbox. In the margin call or stop out state the line turns red.
| Number | What it is |
|---|---|
| Balance | money on the account without open positions |
| Equity | balance + credit − commission ± floating profit or loss − blocked |
| Margin | collateral for open positions and pending orders |
| Free margin | equity − margin: what new trades can be opened with |
| Margin level | equity / margin × 100% |
How margin is calculated
The formula depends on the symbol's calculation mode, shown in «Specification» (right-click the symbol in Market Watch):
- Forex: lots × contract size / leverage × margin rate;
- CFD: lots × contract size × price × margin rate;
- Exchange stocks: lots × contract size × price × margin rate — no leverage;
- Futures: lots × initial margin × margin rate.
The result is converted into the deposit currency. If the specification sets an initial margin, that value is used instead of the formula.
Example. A $2,000 account, a buy of 1 lot EURUSD (a 100,000-euro contract), leverage 1:100, margin rate 1. Margin = 1 × 100,000 / 100 = 1,000 euros, at 1.08 — $1,080. Margin level = 2,000 / 1,080 × 100 = 185%. A pip is worth $10: after 50 pips against you equity is $1,500 and the level is 139%. For simplicity we keep the margin in dollars constant; in reality it shifts slightly with the rate.
Margin call and stop out
These are two thresholds of the margin level (or of the equity amount, depending on how the account is set up); both are settings of your account at the broker. Take a margin call of 100% and a stop out of 50% as an example — your broker may use other values, check the account terms.
- Margin call at 100%: equity equals margin, $1,080. The example account reaches it after 92 pips against the position. New trades usually cannot be opened at this level — there is no free margin.
- Stop out at 50%: equity $540, a loss of $1,460, 146 pips. The server closes positions by force, starting with the most losing one.
A stop out is not a stop loss: it closes the position at market when you have already lost most of the account. A stop loss is placed in advance so you never get there — «How to set a stop loss in MT5».
Leverage: what it changes and what it does not
With 1:500 leverage the same 1-lot position would take $216 of margin, and a 50% stop out would come after 189 pips instead of 146. But the loss per pip is the same — $10. Leverage only lets you open more volume than you can afford. Risk is set by volume and the stop: first decide what percent of the account you are ready to lose, then size from the stop — the lot size calculator and the pip value calculator. Margin, margin level and the room to margin call and stop out for your own position are in the margin calculator.
Opposite positions in one symbol on a hedging account count as covered: their margin follows the broker's rule — basic calculation or the larger leg — and is usually less than the sum of the two. The loss does not go anywhere, though.
How to learn about a margin call in time
MetaTrader 5 itself sends a margin call push notification to the mobile app and repeats it while the account stays in that state. But only while the terminal is running: these are notifications from the local terminal. A separate stop out notification is not described in the help.
On crypto exchanges margin works the same way, but instead of a stop out there is liquidation; how its price is calculated — in «Bybit and Binance liquidation price».
How Davinchu helps
Davinchu Trade Monitor sends a stop out message (on by default) and «Margin alerts» with your own margin level threshold and step to Telegram, email or Discord; margin alerts are turned on in the «EA settings» tab of the account settings. Both are critical: they arrive during quiet hours too. If the terminal stops checking in, «Account connection lost» arrives after 10 minutes. For Bybit futures the dashboard itself sends «Margin call approaching» when 80% of the maintenance margin is used.
Setting up the messages is covered in «MT5 notifications in Telegram», monitoring as a whole — on the «Account monitoring» page. The Free plan connects two accounts at no cost.