Balance represents the realized value of your account and changes only when a trade is closed. Open (unrealized) positions do not affect the balance.
- Calculation of the balance = initial account balance + realized 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 the equity = balance + unrealized net profit and loss
Disclaimers:
- 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.
- The balance and equity on FTMO accounts represent simulated funds only. Any swap or commission charged is also simulated to reflect real-market behaviour.
