JoymistaWhat Is Equity in a Trading Account?
Equity is your account balance plus the current profit or loss of your open trades.
Explained
The balance only changes when a trade closes, while equity moves with price tick by tick. Equity is what free margin and margin level are calculated from.
Example
Example with made-up numbersYour balance is 3,000 dollars and your open trades are down 250 dollars, so equity is 3,000 − 250 = 2,750 dollars.
Use it in Joymista
Related terms
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open in JoymistaEducational content, not investment advice.