Equity Calculation

“ Equity = Balance + Profit - Loss ”

For example, if the account has a balance of $1000, and you have placed an order. The order you placed has a $200 profit, so your account equity will increase to $1,200 immediately, even if you haven't closed the order yet.

Benefits of Equity

The equity shows how much money you have in your trading account in real-time. Therefore, equity helps traders plan their trading more easily and better.

Conclusion

Equity is the total amount of money in a trading account that shows up in real-time. Therefore, equity will show a more precise amount than balance, making it easier to plan your trades.