I know this is connected with ‘margin’ but I cannot figure it out. I am testing a strategy on Activtrades demo account. My demo Eur/Usd account has a balance showing of £776.49 when I entered a trade at 3.90 per pip the account showed that the margin was fully used with zero free margin. If I try to enter a trade at 4.00 per pip Mt4 flashes the error message ‘‘Not enough money’’ . At my leverage of 1:400 Activtrades margin page states that the margin is 25% and the stop out level is 30%. As I have not entered any SL or TP levels why is the error message being triggered ? For example if my SL was going to be 20 pips then my loss would only have been 80 which would take me no where near the margin or stop out level.
You didn’ t mention the currency pair, but with a leverage of 400:1 you can enter a maximum trade of 310,000 units. Are you sure that you trading 3.90 per pip, not 3.90 lots? 3.90 lots is 390,000 units, which is higher than the maximum 310,000 units.
I suspect that many traders confuse the 0,01 (Volume) as one cent per pip, but it is actually 1,000 units or a micro lot. So if you think you trade a volume of 3.90 this is actually 3,90 full lots or 390,000 units (what equals about 39 pounds per pip). Did you perhaps make the same mistake?
Not enough money, I am also ever faced with this condition, it’s because our free margin not enough anymore to open with these lot size, especialy is use low leverage, and miight we can try use smallest lot size to open trades because margin requirement if use small lot size also will small too.