14. What Is your Equity?

 

Now that we covered BALANCE in our previous blog, its time to understand what EQUITY means. Many traders get these two amounts mixed up.

 Remember that EQUITY in forex refers to your BALANCE plus any PROFIT or LOSS from OPEN POSITIONS. 

But, if you don't have any open positions, then your BALANCE equals your EQUITY.

The EQUITY amount is displayed in the Terminal Window under the Trade Tab on your MT4 Client Terminal.

If your using the MT5 trading platform, then the EQUITY amount is located in the Toolbox under the Trade Tab.

So now you know the difference between BALANCE and EQUITY! In the next blog, we will learn exactly what is a FREE MARGIN. Stay Blessed :-)