Account Balance
Trading MechanicsThe total amount of money in your trading account from deposits, withdrawals, and realized (closed) trades. Does not include floating profit or loss.
What Is Account Balance?
Account balance is the cash total in your trading account based on completed transactions only. It includes your initial deposit, any additional deposits or withdrawals, and all Realized P/L from closed trades (including Swap charges). Account balance does not change when your open positions move in or out of profit. It only updates when a position is closed.
Balance vs. Equity
The distinction between balance and Account Equity is critical. Balance ignores open positions. Equity includes them. If your balance is $10,000 and you have open positions with Floating P/L of -$2,000, your equity is $8,000. Your Margin Level and risk of margin call are based on equity, not balance.
Balance Example
You deposit $5,000 (balance: $5,000). You open a trade and close it with a $200 profit (balance: $5,200). You open another trade that is currently losing $300 in floating P/L. Your balance is still $5,200, but your equity is $4,900. If you close this second trade at the current price, your balance drops to $4,900. The balance changes only at the moment of closing.
Related Terms
Account Equity
The real-time value of your account including open positions. Equity = Account Balance + Floating P/L. Equity determines your margin level and available margin.
Floating P/L
The unrealized profit or loss on open positions based on current market prices. Floating P/L changes with every price tick until the position is closed.
Realized P/L
The actual profit or loss locked in when a position is closed. Realized P/L is added to or deducted from your account balance.
Margin
The deposit required to open and maintain a leveraged position. Margin is not a fee. It is collateral held by the broker while your trade is open.