// TRADING TERMINOLOGY

What is Equity?

The total value of a trading account, including unrealized profits and losses.

In-Depth Explanation

Equity = Balance + Floating P/L. It represents the actual amount of money you would have if you closed all your open positions right now.

"Your balance is £10,000, but you have an open trade with a £500 profit. Your equity is £10,500."

Margin is the portion of your account balance that the broker "locks away" as collateral to keep your leveraged position open.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

Buying an asset with the expectation that its value will increase.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.