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.