Understanding these figures can help you monitor the financial status of your trading account.
Balance
Balance is the amount in your trading account after completed transactions have been applied.
It generally reflects:
- deposits and withdrawals;
- realised profits and losses from closed positions; and
- applicable fees or adjustments.
Example
You deposit USD 250 and later close a trade with a USD 50 profit.
Assuming there are no other transactions or fees:
Balance = USD 300
Equity
Equity is the current value of your trading account after taking the unrealised profit or loss on your open positions into account.
In simple terms:
Equity = Balance + Unrealised Profit/Loss
Because the value of open positions changes with market prices, Equity can move continuously while you have open trades.
Running P/L
Running P/L, also called unrealised profit or loss, is the combined current profit or loss of your open positions.
It remains unrealised until the relevant positions are closed.
Margin
Margin is the amount of funds required to open and maintain leveraged positions.
The amount of margin required depends on factors such as the instrument, trade size, leverage and applicable trading conditions.
Free Margin
Free Margin is the portion of your Equity that is not currently being used as margin for open positions.
It is generally calculated as:
Free Margin = Equity − Used Margin
Example
If:
- Equity = USD 1,250
- Used Margin = USD 250
then:
Free Margin = USD 1,000
Free Margin can be used to support fluctuations in existing positions and, where sufficient, to open additional positions.
Margin Level
Margin Level shows the relationship between your Equity and Used Margin as a percentage.
It is calculated as:
Margin Level = (Equity ÷ Used Margin) × 100
A falling Margin Level indicates that your available equity is decreasing relative to the margin required for your open positions.
If your Margin Level falls to the applicable Margin Call or Margin Stop Out threshold, trading restrictions or automatic position closures may apply.
You can view your Balance, Equity, Running P/L, Margin, Free Margin and Margin Level directly in your trading platform.