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What is the difference between Balance and Equity?

What is the difference between Balance and Equity?

Balance represents the realised value of your account and changes only when a trade is closed. Open (unrealised) positions do not affect the balance.

  • Calculation of the balance = initial account balance + realised total net profit and loss

Equity represents the real-time value of your account and reflects its current value including open positions. Equity fluctuates continuously based on the profit or loss of open trades.

  • Calculation of equity = balance + unrealised net profit and loss

Disclaimer: Please note that commission and swap fees may be reflected in your account balance before a trade is closed, depending on the trading platform’s specific configuration.

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