Definition of Equity
The real-time value of your trading account, calculated as Balance + Unrealized Profit/Loss from open positions. Equity fluctuates with every tick while you have open trades.
At a glance
Term
Equity
URL slug
equity
Category
General
Short answer
The real-time value of your trading account, calculated as Balance + Unrealized Profit/Loss from open positions.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Equity” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Equity” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Equity” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
The real-time value of your trading account, calculated as Balance + Unrealized Profit/Loss from open positions.
Knowing the precise definition of “Equity” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Equity” as loose slang while your broker/platform specification defines it more narrowly.