You may encounter the “Not enough money” error when opening a trade. This error occurs when a trader tries to open a position but there are not enough funds in the account to cover its cost. Let’s take a closer look:
Understanding Margin and Spread
To avoid this error, it’s important to understand the concepts of margin and spread:
- Margin. This is the collateral held to maintain an open trade. You can easily calculate it using our Trader’s calculator.
- Spread cost. This is the difference between the seller’s price (ask) and the buyer’s price (bid) in a two-way quote, expressed in the account’s currency.
Key steps to resolve the error include:
- Reducing the position size to lower trading costs.
- Increasing leverage to reduce the margin requirement.
- Adding funds to increase available margin.