Equity
Updated 2026-09-20
Definition
The value of the account including the unrealised profits and losses of open positions.
Why it matters
Equity = balance + open profit/loss. It's the number that matters for margin: if equity falls too far relative to used margin, margin calls and stop outs follow.
Practical example
A $5,000 balance with open losing positions of $400: equity $4,600.
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Educational content, not financial advice. Trading involves risk.