@NACHOB87 I’m going to answer your questions, but I strongly recommend to cover the basis before opening any trade or investment, otherwise you can make a huge mess and lose money without even knowing why.
It is a margin problem, so you need to understand how margin works.
On your MetaTrader 4, you have Balance, Equity, Margin and Free Margin.
Balance shows how much money you have in your account. Results of current trades are not included.
Equity shows how much money you have in your account + results of current trades.
Let’s have a break and have a small practical example.
You have $1,000 and a current position on EUR/USD that is losing $30. You will have:
Margin is the amount of money that you have to guarantee to your broker in order to open your positions. For the sake of simplicity, let’s say that your account is in USD.
You want to open a trade on EUR/USD with 0.01 volume.
0.01 volume means that you are opening an investment with a value of $1,000, so you have to guarantee to your broker $1,000. Your margin will be $1,000. If your margin is bigger than your equity, you can’t open the trade because, to use your words, “you don’t have enough money”.
Here comes the leverage. Darwinex offers a leverage of 30:1, this reduces the margin you have to guarantee by 30. In the example above, you had a margin of $1,000. With a leverage of 30:1, your margin becomes $33.33.
If you have $1,000 in your account and you open such a trade, you will have:
Free Margin: $966.67
You can still use $966.67 to open other trades.
What if you wanted to open the same position with a broker that offers a leverage of 1000:1?
I give you the task to calculate everything, I share the results:
Free Margin: $999
You can understand that the higher the leverage, the lower the margin you have to guarantee to your broker, the more positions you can open.
Of course, you also have to take into account that if your trades are going bad, having losses, your equity will drop and so your free margin, exposing you to the risk of having a margin call.
Most European Brokers have to adhere to ESMA rules, so you won’t find any leverage higher than 30:1.
American brokers can offer 50:1. Offshore brokers can go much higher than that, but usually they offer less guarantees for your money.