Essential

Equity

The total value of a trading account including the balance plus or minus any unrealized profits or losses.

Definition

Equity represents the current total value of your trading account. It equals your account balance plus or minus any floating (unrealized) profits or losses from open positions. Equity fluctuates in real-time as markets move.

How It Works

Equity = Balance + Floating P/L
Balance: $10,000, Open profit: $500 → Equity: $10,500
Balance: $10,000, Open loss: -$300 → Equity: $9,700
Used to calculate margin level

Trading Tips

Monitor equity, not just balance

Margin level = (Equity / Used Margin) × 100%

Low equity triggers margin calls

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