In the Metatrader 4 or Metatrader 5 platforms, there are a lot of common problems that we face. The most common issue is the Not Enough Money MT4 error.
You would probably have encountered this error in the Metatrader 4 or 5 platforms. That’s why you are here. To solve this error, first, you need to understand what this error exactly means, and then we will proceed on how to solve the Not Enough Money MT4 error.
What is Not Enough Money MT4 Error?
It’s not very difficult to understand the meaning of this error. As the name suggests, this error concerns your trading account’s insufficient balance.
To be precise, the “Not Enough Money MT4 error” means that you don’t have sufficient balance in your account to place a new trade. When you don’t have enough free Margin to cover the margin requirement, you see this error.
To fix this error, there are some simple steps you can follow, and the basic one is to increase the leverage, or you can also add more money into your trading account, and you will not face this error.
Basically, there are 3 main reasons why you see this error:
- Your trading account doesn’t have sufficient funds for the trade.
- Your trading account doesn’t have any funds yet.
- Or your account doesn’t have the funds needed to meet the margin requirements.
How to Fix “Not Enough Money MT4 Error”?
The simple way to fix the Not Enough Money MT4 error is by adding funds to your trading account. You can deposit funds to your trading account( I mean the broker), or you can also transfer funds from another account to increase the amount of free Margin.
Next, you have to reduce the volume of the position you want to open. And then, you have to close the other open positions on your account. This way, you will be able to fix the MT4 error.
How to find the Margin required for opening a position?
If you are a new trader and you don’t really know how you can find the right amount which is required for opening a position, then there are some calculations that you need to understand in order to open a position.
Margin = V (lots) X Size of the Contract / Leverage
In this, the Margin is the deposit that is required to open the position. Next, there is the Size of the Contract, which is expressed in the unit of the base currency. Please note that one unit of the lot converts to 100,000 units of the base currency.
Hence, 0.1 lots = 0.1 x 100,000 = 10,000 units of the base currency. While, 0.01 lots x 100,000 = 1,000 units of the base currency.
Next, there is leverage which is the ratio of the personal funds to borrowed funds applied to the position:
- For leverage of 1:500, plug “1000” into the formula.
The base currency can be different, like EUR, USD, or GBP.
You will be required to convert the amount from the Margin in the base currency to the denomination of your account currency, as per the exchange rate.
So, there is everything you need to know about the “Not Enough Money MT4 Error”. Hopefully, you will be able to fix this error with our compressive guide.
In most cases, the problem happens because of insufficient funds. However, sometimes it can also occur when you have added the money into your account, this happens because of some important news or colossal volatility.
Moreover, if you’re in a trade with small capital, you can add more money by asking your broker to increase the minimum balance limit in your account.