What is the difference between balance and equity in MT4/MT5?
In MT4/MT5, balance and equity are two key financial metrics that help traders understand their account status.
Balance:
This is the total amount of money in your trading account from closed trades only. It doesn’t include any profits or losses from open positions.
This is the total amount of money in your trading account from closed trades only. It doesn’t include any profits or losses from open positions.
Equity:
This is the total real-time value of your account, including your balance and the current value of open positions. It reflects unrealized profits or losses from ongoing trades.
This is the total real-time value of your account, including your balance and the current value of open positions. It reflects unrealized profits or losses from ongoing trades.
Formula:
Equity = balance + unrealized PNL