"Not enough money" error on MT5 demo account

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i have been using a demo account with a balance of 100,000 USD and was able to trade by instant market exceution without any problems.

But when i decreased the balance to 3,000 USD, it would give me a "Not enough money" error even if i used the lowest possible lot size (0.1) 

I tried placing a pending order , but when the actual price reached my target price, the order was rejected and i was taken out of the trade 

So why does this happen and how can i fix it ? A lot size of 0.1 means 1 dollar per pip so i should have enough margin to keep an open position.

Taking into account that the broker offers real accounts with a balance of just 100 $ 

Files:
rejected_trade.jpg  50 kb
 
fawzysalah: i have been using a demo account with a balance of 100,000 USD and was able to trade by instant market exceution without any problems. But when i decreased the balance to 3,000 USD, it would give me a "Not enough money" error even if i used the lowest possible lot size (0.1). I tried placing a pending order , but when the actual price reached my target price, the order was rejected and i was taken out of the trade. So why does this happen and how can i fix it ? A lot size of 0.1 means 1 dollar per pip so i should have enough margin to keep an open position.

Taking into account that the broker offers real accounts with a balance of just 100 $ 

You are not properly calculating your risk, taking into account balance, leverage and margin requirements. You also need to consider your stop-loss size when calculate your order volume and risk. You don't seem to be doing any of that and just using a fixed lot size for your orders.

 
Fernando Carreiro #:

You are not properly calculating your risk, taking into account balance, leverage and margin requirements. You also need to consider your stop-loss size when calculate your order volume and risk. You don't seem to be doing any of that and just using a fixed lot size for your orders.

I did add a stop loss as shown in the attached photo of my pending order and it is not that far away from the set price.

I am also using 1:1 levrage and a lot size of 0.1 (1 USD a pip) so i think i am not risking a lot of my balance, right ?  


So if i have a 3,000 USD account with a trade lot size of 0.1 and a levrage of 1:1 , what should be the margin requirement ? 

Files:
rejected_trade.jpg  50 kb
 
Well, short answer here:

1 lot represents (in FX) usually 100.000 of the currency.

Therefore a leverage of 1:1 and a lot size of 0.1 will require a margin of 10.000 of your currency.

So if you would be using a leverage of 1:10 you would require a margin available of 1.000.

Therefore an account balance of 1.000 is still not enough.

Your broker has a margin call and a stop out level, which you need to maintain. If you are below this requirement, you either get your positions closed, or cannot open them in the first place.


 
Dominik Christian Egert #:
Well, short answer here:

1 lot represents (in FX) usually 100.000 of the currency.

Therefore a leverage of 1:1 and a lot size of 0.1 will require a margin of 10.000 of your currency.

So if you would be using a leverage of 1:10 you would require a margin available of 1.000.

Therefore an account balance of 1.000 is still not enough.

Your broker has a margin call and a stop out level, which you need to maintain. If you are below this requirement, you either get your positions closed, or cannot open them in the first place.


Ok so i tried again with the 100,000 USD account with a leverage of 1:1 and a lot of 0.1 and it gave me a margin of 10,000 as shown in the photo , so if i used a balance of 3,000 with the same leverage and lot size , i should have a margin of 300 , right ? 

i also tried trading with a 3,000.09 balance , lot size of 0.1 but with a levrage of 1:10 and was able to place a trade with the following as shown in the second screenshot

Equity : 3,000.02

margin : 1,050.43

free margin : 1,949.77

Margin level (%) : 285.62

so the margin here is around 35% of the balance , so what is the equation to calculate the margin ? 

Thanks 

Files:
IMG_6167.jpg  71 kb
IMG_6169.jpg  60 kb
 
(Lot size * contract size) / leverage = margin.

Lot size is (in this case) 0.1
Contract size is (in FX usually) 100.000
Leverage is (in this case 1:10) 10

0.1 * 100000 = 10000
10000 / 10 = 1000

This requirement then gets "converted" from the symbols margin currency to your account currency, using always the most current quote.

That's how it is calculated.
 
You have to consider your leverage, margin and the drawdown of your strategy.
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