Equity is the real-time value of your trading account: your balance plus or minus the profit and loss of any open positions. Unlike balance, it moves constantly while trades are open. Brokers use equity, not balance, to work out free margin and to decide when a margin call is triggered.
Forex Term
Equity
The live value of your account including open trade profit or loss.
Example
With a $1,000 balance and a trade currently up $50, your equity is $1,050.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.