# Not enough money - help me understand the basic math

Before any solution code, pls help me understand the basic math. I'm back testing on a \$1000 CAD Account trading EURUSD. My broker is AvaTrade and for CAD account trading EURUSD, they list 4.5% as margin:

I want to trade 0.06 lots. So it is 0.06*100,000 = 6,000 units, which should cost around 7,320 USD (6,000 * 1.22 EURUSD). Converted to CAD around 1.3 USDCAD, around 9,516 CAD. Then 4.5% of that is 428 CAD.

This is the error:

2023.07.07 19:31:02.047 2021.01.04 07:10:00   calculated account state: Assets: 0.00, Liabilities: 0.00, Equity 1000.00, Margin: 1681.28, FreeMargin: -681.28

2023.07.07 19:31:02.047 2021.01.04 07:10:00   CTrade::OrderSend: market buy 0.06 EURUSD sl: 1.22484 tp: 1.22780 [not enough money]

Having a hard time understanding where these numbers come from above ?  Margin: 1681.28, FreeMargin: -681.28

Thanks.

Algo T:

Before any solution code, pls help me understand the basic math. I'm back testing on a \$1000 CAD Account trading EURUSD. My broker is AvaTrade and for CAD account trading EURUSD, they list 4.5% as margin:

I want to trade 0.06 lots. So it is 0.06*100,000 = 6,000 units, which should cost around 7,320 USD (6,000 * 1.22 EURUSD). Converted to CAD around 1.3 USDCAD, around 9,516 CAD. Then 4.5% of that is 428 CAD.

This is the error:

2023.07.07 19:31:02.047 2021.01.04 07:10:00   calculated account state: Assets: 0.00, Liabilities: 0.00, Equity 1000.00, Margin: 1681.28, FreeMargin: -681.28

2023.07.07 19:31:02.047 2021.01.04 07:10:00   CTrade::OrderSend: market buy 0.06 EURUSD sl: 1.22484 tp: 1.22780 [not enough money]

Having a hard time understanding where these numbers come from above ?  Margin: 1681.28, FreeMargin: -681.28

Thanks.
Margin is calculated according to the formulas listed here:

https://www.mql5.com/en/docs/constants/environment_state/marketinfoconstants#enum_symbol_calc_mode

These 4.5% you are using is the margin rate. What you are missing is the leverage. According to your calculations, I guess your leverage is 1:30. But not sure about that.

Anyways, your calculations are missing the leverage.