Basics
Equity
Account balance plus or minus unrealized profit/loss.
Full Definition
Equity represents the current value of your trading account, calculated as your balance plus or minus any floating (unrealized) profit or loss from open positions. Equity fluctuates in real-time as open positions move in or out of profit. It's the amount you would have if all positions were closed at current prices.
Example
Your account balance is $10,000. You have an open trade showing $500 unrealized profit. Your equity is $10,500. If that trade moves to $200 loss instead, your equity becomes $9,800.
Formula
Equity = Balance + Floating Profit/LossRelated Terms
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