Balance represents the realized value of your account and changes only when a trade is closed or when a deposit or withdrawal is processed.
It is calculated as: Balance = deposit − withdrawals + realized total net profit and loss
Open (unrealized) positions do not affect the Balance.
Equity represents the real-time value of your account and reflects its current value including open positions.
It is calculated as: Equity = Balance + unrealized net profit and loss
Equity fluctuates continuously based on the profit or loss of open trades.
Why is the difference important?
- Balance reflects results from closed trades only
- Equity reflects the actual current value of the account
