Margin level % in MT5 backtest results - what would constitute a margin call?

 

Greetings,

Trying to understand the meaning behind the number in the backtest results for Margin Level %.

At what level would it be considered a 'bad thing", ie, being margin called in possible future live trading?

For example, some of my backtests show this level at 419%, other times it is 1765%. I have no clue what this value means.

I'd appreciate any comments.

Thanks

 

Please do some research on how leverage works and how the margin requirements are calculated and applied.

Also learn about free margin, deposit load, margin call-out and margin stop-out.

These concepts are part of the trading basics that all traders should know and learn about.

Search the web as there are many websites that offer free lessons on these trading basics.

 
Your topic has been moved to the section: Expert Advisors and Automated Trading
 

ok, found some useful info from the links above.


With a deposit $300 lets assume you have some open positions with your total margin as 552.42 USD and your positions are $400 in profit

Therefore:

Equity =$300+400 = $700(Equity is your account balance plus the floating profit/loss of your open positions)

Free margin =700-552.42 =147.58

3.Margin level is the ratio of equity to margin:

Margin Level = (Equity / Margin) x 100

So: 700/552.42 * 100

Documentation on MQL5: Constants, Enumerations and Structures / Environment State / Account Properties
Documentation on MQL5: Constants, Enumerations and Structures / Environment State / Account Properties
  • www.mql5.com
Account Properties - Environment State - Constants, Enumerations and Structures - MQL5 Reference - Reference on algorithmic/automated trading language for MetaTrader 5
 

Posting final comment here for myself and others to save time, this link provides a nice summary

https://www.icmarkets.com/blog/what-is-a-margin-call/


What is a margin call? – IC Markets | Official Blog
What is a margin call? – IC Markets | Official Blog
  • 2017.02.24
  • www.icmarkets.com
One of the most unpleasant experiences a trader can face is known as a margin call. To understand the dynamics behind this feature one must first appreciate what margin is in the forex market, which unfortunately is a commonly misunderstood concept. What is margin? Margin is essentially a good-faith deposit that’s required by the brokers in...