What is your equity?

When trading, it’s not unusual for traders who are starting out to get confused between their balance and their equity.

While they can sometimes reflect the same amount, balance and equity refer to two different amounts.

Equity refers to the amount of money a trader has in their trading account, being their balance plus or minus any profit or loss from open positions. If, however, the trader doesn’t have any open positions, their equity is equal to their balance.

The equity amount can be found at different places on the trading platform, depending on the version being used.

On the MT4 client terminal, equity is displayed in the terminal window under the Trade tab. On MT5, equity can be seen in the Toolbox under the Trade tab.

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