Health level often refers to a measure of the overall well-being or stability of a trading account or portfolio. It evaluates how much risk your account carries based on market conditions and the assets held.
It is calculated as:
Health Level = (Account Value ÷ Invested Amount) × 100
Example:
If your Account Value is $1,000 and your Invested Amount is $500:
($1,000 ÷ $500) × 100 = 200%
Your Health Level would therefore be 200%.
Your Health Level changes as your Account Value changes, so profits can increase it while losses can reduce it.
Important Note: Leveraged positions are subject to liquidation if the Health Level reaches 20% or lower.