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. 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. It doesn’t include any profits or losses from open positions.
Equity:
This is the total value of your account, including both your balance, credit and the current value of any open positions. It shows how much your account is worth right now, taking into account unrealized gains or losses.
This is the total value of your account, including both your balance, credit and the current value of any open positions. It shows how much your account is worth right now, taking into account unrealized gains or losses.
It is calculated as:
Equity = balance + credit (if any) + unrealized PNL
