Balance vs equity
- Balance changes only when trades are closed, or when you deposit or withdraw.
- Equity changes constantly while trades are open.
Margin calls and stop outs are based on equity, not balance.
Forex glossary
What Is Equity in Forex Trading?
Definition
Your account balance plus or minus the floating profit or loss on all open trades. It is what your account would be worth if you closed everything now.
Updated
SaveRelated terms
- Balance
- The amount in your trading account from deposits, withdrawals and closed trades, ignoring any trades that are still open.
- Free margin
- The money in your trading account that is not tied up as margin and is available to open new positions or absorb losses.
- Margin call
- A warning from your broker that your account equity has fallen too low to support your open positions.