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."

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