Balance definition

Balance is the cash in a trading account after deposits, withdrawals, and closed trades. It does not include floating profit or loss from open positions.

Balance updates only when you close a trade, make a deposit, or process a withdrawal, so it does not move with the real-time value of open positions. A closed trade adds its profit or subtracts its loss; an open trade leaves the balance untouched until you close it.

Balance differs from equity. Equity is the real-time account value: it takes the balance and adds or subtracts the floating profit or loss on open positions. When you hold no open positions, balance and equity are the same.

Balance Example

You deposit USD 5,000 into a trading account, then close a trade for a USD 300 profit, so the balance becomes:

5,000 + 300 = USD 5,300

You then open a new position that is USD 100 down. The balance stays at USD 5,300 because the trade is still open, but the equity drops to USD 5,200.