What does the "Insufficient Money" error mean on the MT4/MT5 platform?
The so-called "insufficient funds" error refers to the fact that the available margin in the account is insufficient to meet the margin level required by the exchange at the time of placing a new trade.
When engaging in financial trading, the proper use of margin is crucial. The term "Insufficient Money" error refers to a situation where the available margin in your account is insufficient to meet the margin requirements for a new trade.
This means that if you plan to execute a trade that exceeds the leverage setting currently in your account, you must ensure there is adequate funding to support the new open position.
For example, suppose you intend to execute a trade valued at $100,000 with a leverage ratio of 1:100 in your account. According to this setup, you would need at least $1,000 of available funds to initiate this new position.
Information regarding margin requirements, margin levels, and available margin is readily visible on the MetaTrader platform.
Ensuring your account has sufficient margin to support all open positions at all times is crucial. This practice helps safeguard against the risk of forced liquidation due to market fluctuations, thereby protecting your account balance.
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