Equity
At Trader’s Way, Prime Online Forex and CFD broker, clients have access to some of the most precise quotes, latest trading tools and apps. Moreover, we provide our clients with the most competitive trading conditions; enabling them to take advantage of even the smallest movement in the market. As part of our ongoing edu series, here is a brief recap on “Equity”. Equity is the amount that is left once a trader closes all open positions; in short, equity is the balance plus profits or losses.
Equity = Balance + P&L
Example: Sam's balance is 2,000 USD. Before he opens any positions, his equity = his balance = 2,000 USD. Sam buys 1 standard lot of EURUSD. The price goes up and his P&L is 1,000 USD. Now Sam's equity = his balance + P&L = 2,000 USD + 1,000 USD = 3,000 USD.
For more information, please check out Trader’s Way.
At Trader’s Way, Prime Online Forex and CFD broker, clients have access to some of the most precise quotes, latest trading tools and apps. Moreover, we provide our clients with the most competitive trading conditions; enabling them to take advantage of even the smallest movement in the market. As part of our ongoing edu series, here is a brief recap on “Equity”. Equity is the amount that is left once a trader closes all open positions; in short, equity is the balance plus profits or losses.
Equity = Balance + P&L
Example: Sam's balance is 2,000 USD. Before he opens any positions, his equity = his balance = 2,000 USD. Sam buys 1 standard lot of EURUSD. The price goes up and his P&L is 1,000 USD. Now Sam's equity = his balance + P&L = 2,000 USD + 1,000 USD = 3,000 USD.
For more information, please check out Trader’s Way.