The Scenario: Balance of $1000, bought USD/CHF at 1 mini lot, with $200 Required margin. With a 960 pip/dollar floating loss.
In the image above, for 20% Margin level, the used margin drops down to $40.00
Why is this? Because the entire point of Stop Level being at 20% is to show that it’s gone below the amount of Used Magin which is originally $200. (40/200*100 = 20%) If the used Margin was 40 and your equity dropped to 40, it’d be 100%