If ‘Not enough money’ message pop up it means that there is not enough money to cover the margin requirement on the account, you will need to fund your account or close some/all open trades if any to free up margin.
To be able to open a position the Free margin should be enough to cover the margin requirements, and the MT4 does not allow opening positions that would bring your margin level to 100% or less.
Please refer to the calculations below:
- Free Margin = Equity – held margin
- Margin requirement (FX) = (Contract size * lots) /Leverage * (Conversion from base currency to USD)
Margin requirement (CFD) = Contract size * lots * price * margin percentage
* To find out the margin percentage for a symbol go to:
Market watch > symbol wanted > right click >symbol specification > margin percentage
Example 1: Client’s free margin = $250 and wishes to open 1 lot EURUSD at 1.12320 and the account leverage is 500
1 lot EURUSD margin = (1 * 100,000) / 500 * 1.12320 ) =
200 EUR * 1.12320 (EURUSD conversion rate) = $224.64
The clients free margin ($250) > required margin ($224.64) which will allow the deal to be opened/placed
Example 2: client’s free margin = $12 and wishes to open 0.05 lots GBPUSD at 1.32030 while the account leverage is 500
5 lot GBPUSD margin = (0.05 * 100,000) / 500 * 1.32030 ) =
10 GBP * 1.32030 (GBPUSD conversion rate) = $13.20
The client’s free margin ($12) < required margin ($13.20) which will not allow the deal to be opened/placed and the client will receive “not enough money” error
Example 3: the client’s free margin = $1050 and wishes to open 10 lots US30Roll at 27500, the margin percentage is 0.5%
- 10 lots US30Roll margin = 1 * 10 * 27,500 *0.5% = $1,375.00
The client’s free margin ($1050) > required margin ($1,375.00 ) which will not allow the deal to be opened/placed and the client will receive “not enough money” error.