Understanding your account balance, equity, and margin

Understanding these terms is critical for managing your trading account:

• Balance: The total amount of money in your account, excluding open trade profits/losses. This number only changes when you deposit, withdraw, or close a trade.
• Equity: Your real-time account value. It is calculated as Balance + Floating Profit/Loss. If you have open trades, equity fluctuates with market prices.
• Margin: The amount of money required to open and maintain a position. It is a portion of the trade value locked by the broker as collateral.

Free Margin is the amount available for new trades (Equity - Used Margin). If Free Margin drops too low, you may face a margin call.