I just created a demo account with INGOT Brokerage on MT5. The demo provides a single leverage option of 1:100.
I deposited $10,000 and decided to use most of my margin which I assumed to be $1,000,000 based on the broker leverage.
At the time, the stock was trading at $2030 (10 shares/lot) so I decided to buy 10 lots (the maximal amount). which makes the position value = $203,000 ($2030 * 10 shares * 10 lots)
MT5 complained that I didn't have enough money. It would only allow me to buy 4 lots.
Are my calculation wrong? Am I missing something?
sometimes there are time limitations, especially in stock trading. in some hours of the day the leverage decrease.
Also, you should consider the spreads or commissions.
Hi Zaid Amir, since this is a demo account, you may try next time you experience that limitation to save a screenshot of the "TRADE" tab where you see the operations, BEFORE opening the new position. Intention is that you could check your "margin", "Free margin", and "Margin level". Then after opening the position with the amount allowed, check again those 3 fields. Sometimes "margin" secured by the broker is higher due to volatility or other conditions. Some brokers may limit "Margin level" to be higher than 100% before opening a new position.
Worst case, you would start to get familiar with the margins your brokers actually request.
PD: "margin" and "Free margin" are found in the bottom line of the trade positions along with your "Balance" and "Equity".