Equity
Account balance ± the live profit or loss of open positions. Balance reflects closed trades, equity shows the real value at that moment.
Balance changes only with closed trades; equity moves with every tick while positions are open. Margin level and drawdown are calculated on equity.
Prop firms' daily loss limits are mostly calculated on equity: your open loss counts toward the limit too.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.