Equity, Balance, Trade and Margin.

* Equity = Capital or + Profits

* Balance = Capital + Profits + Loss

* Trade = Profit Or Loss when trading is still on.

* Margin = Colateral removed from your capital when you enter trade.

As Simplified above,
EQUITY is the money or capital you invested for Forex Trade in other to make Profit. It refers also to the Amount giving to you for learning (Demo) Forex Trade. For example, if you deposit $1,000 in your account with your broker to trade Forex, or you are giving $5,000 for demo (learning) account, so the initial capital is your EQUITY. If you traded and make profit, all of them is still your EQUITY.

BALANCE is your capital (equity), added to the profit or loss you made when you entered a trade. Equity is same as balance, when you exit all your trade.

TRADE is the Profit or loss you are making during trading Forex. If your trade is on profit it will be blue, but red when in loss with a minus (-) sign.

MARGIN is the collateral or money your broker removes from your equity (capital) as you enter trade. The More big profit you want to make, the more margin (they remove). But they will put it back to your equity if you successfully close all your trading (positions).

Next Topic:  Charts, Quotes, Bid and Ask.

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