What is Equity?

Updated October 17, 2026

Equity is your account balance plus or minus the profit or loss on open trades right now.

Balance only changes when trades close. Equity moves live with every tick.

If you have $1,000 balance and an open trade down $100, your equity is $900.

Equity is the real number that matters for margin and risk. Watch it, not just balance.

Example

Balance $2,000, open trades up $150, equity $2,150.

Why is equity lower than balance?

Because you have open trades in a loss.

Do PAMM reports show equity?

Usually yes, along with balance and drawdown.

Rather have AI trade for you?Get the free guide on hands free AI trading accounts. Send me the free guide →

Work out your own number with the quit your job calculator, or take the passive income quiz.