Equity

EQUITY

Let’s assume, you decided to trade miniand micro lots and opened many orders.

Good: some of them seem to go in your favor, and you can lock in that profit if you close these orders right now.

However, some of your deals are potentially bringing you loses.

If you look at your balance, you will see it still equals $2000 as it will not change until you close all your opened orders.

But how can you track the total outcome of your opened positions?

To track the outcome of your trades altogether, you need to monitor your account equity.

It represents the account value that you will have had if all your orders were closed at that time.

Account equity includes your initial investment and floating profit or lossthat your open positions have accrued.