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Money

Equity

Account balance adjusted for open profit and loss.


Balance reflects closed trades only. Equity is balance plus the floating profit or loss of everything currently open, and it is the number that actually governs your account — including whether your margin level is safe.

Because equity moves with open positions, a healthy-looking balance can sit alongside an equity figure that is one bad candle from a margin call. Risk should always be computed against equity, not balance.

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