Why does MT4 say not enough money?
Have you ever thought about why it’s pervasive nowadays to keep getting a notice telling you that there is not enough money MT4? Why is this message so standard in the Forex community? And newbies will probably ask themselves, what is actually MT4 in the first place?
Before we get to the point and explain to you why MT4 keeps saying not enough money, we’d like to provide you with a brief explanation of what MT4 really is. As a Forex trader who’d like to become successful and wealthy one day, you’ll need to know everything that can happen to you in various situations like this.
Let’s get to know what MT4 is before explaining what lies behind the message: “Not enough money MT4,” shall we?
MT4 – A brief definition and explanation of it
MT4 is short for MetaTrader 4, known as one of the best Forex trading platforms at the moment. This particular platform offers traders the leading analytical and trading technologies and additional services that could be very useful to traders. Many users think trading on the MT4 platform is very flexible and convenient.
The MT4 Forex trading system is very powerful since it allows you to implement each and every strategy of any complexity. There are fantastic MT4 tools that are at your disposal, such as:
- The market and pending orders
- Stop orders and trailing Stop
- Instant execution and trading from chart
- A tick chart and trading history
Analytical functions on the MT4 platform
One of the MT4 platform’s most vital points is its analytical functions. Before we explain the issue of “not enough money MT4, which is very common, we’d like to give you a quick and valuable introduction to these useful analytical functions on the MT4 platform.
So, there are online quotes and interactive charts with no less than nine periods. They allow you to examine these quotes in detail, promptly responding to every single price change. On MT4, you can expect 30 built-in technical indicators and 23 analytical objects that immensely simplify this task.
Additional information about the MT4 platform
If you’re still thinking about whether an MT4 platform would be a good choice for you or not, you should know that there is also an option for this platform to copy deals of other traders automatically. It’s only required for you to select your provider, subscribe to a signal, and let the terminal copy the provider’s trade.
Does not enough money MT4 message appear?
Now that we’ve presented you with all the essentials of the MT4 trading platform, it’s time to understand why there is not enough money MT4 demo message so common these days. So, when you get the “not enough money MT4” message appears it means that there is not enough money to cover the margin requirement on the account.
That’s why it is necessary for you to fund your account or close/open trades, if any, in order to free up the margin. Therefore, you shouldn’t worry too much about why does MT4 say not enough money. Instead of that, to open a position, the Free margin has to be enough to cover the margin requirements.
However, keep in mind that the MT4 trading platform doesn’t allow opening positions that would take your margin level to 100% or less than that.
How can you calculate the amount of required margin?
Examples are the best way to understand something nowadays. The well-known calculation formula to find out the amount of margin required for opening a position:
<Margin> = <Size of the contract> / <Leverage>.
Please refer to the following calculation:
- 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
In order to find out the exact margin percentage for a symbol, you’ll need to do the following steps:
Go to market watch > symbol wanted > right click > symbol specification > margin percentage.
The best example of the calculation
The best example is where the free margin of a client equals $250. Suppose he wants to open one lot EURUSD at 1.12320. The account leverage is 500 in this case.
- 1 lot EURUSD margin = (1 * 100,000) / 500 * 1.12320) =
- 200 EUR * 1.12320 (EURUSD conversion rate) = $224.64
Conclusion: Client’s free margin ($250) > required margin ($224.64), which will allow the deal to be opened/placed.
What is the best solution regarding margin?
The smartest choice is to have enough margins that will be more than enough to support all your existing positions in any case so that you won’t have to experience “Stop out (liquidation)” that could zero your account balance right away.
Keep in mind that margin levels, required margins, and all the available margins for new positions are, without exception, visible in MetaTrader. In case you’d like to know about the XM’s Stop Out percentage amount, read the following:
XM’s Stop Out % equals 20% for all account types, and the maximum leverage available is 1:888.
Summary of the standard MT4 error
Not enough money MT4 messages are widespread these days. Regardless of whether they have just started their career in trading or have some experience, many traders will soon encounter this unpleasant message.
The most important thing is to know that nothing is scary and that it is solvable. Once again, when the message “not enough money MT4” appears, it’s an error that pinpoints that you are trying to place a new trade without having enough funds to cover what’s called the “margin requirement.”
For that reason, the free margin is less than the required margin for the new trade. So, you’ll have your leverage setting in your trading account. In addition to that, you’ll have to possess a certain margin to support all of your open positions.
Here’s an example: you’d like to trade 100.00 dollars of the trading volume. The leverage volume you’ve set is 1:100. In this case, you’ll have to have more than 1,000 dollars in order to open the position.