What is the difference between Balance and Equity?
Two numbers you'll see constantly in MT5 and MatchTrader: here's what they each mean and why it matters.
Balance
Balance reflects the realised value of your account. It only changes when you close a trade, or when a reward or fee is processed. Open positions do not affect your balance.
Equity
Equity is your real-time account value. It includes your balance plus the current unrealised profit or loss on any open positions. Equity fluctuates continuously as the market moves.
The key difference
| Balance | Equity | |
|---|---|---|
| Updates when | You close a trade | Every tick, in real time |
| Includes open P&L | No | Yes |
| Used for limits | No | Yes, both daily loss and max drawdown |
Why it matters for your limits
Both the daily loss limit and the maximum drawdown are measured against your equity, not just your balance. This means a floating loss on an open trade counts toward your limits in real time, even before you close the trade.
Example: your balance is $52,340 and your daily loss limit is $1,570.20. You open a trade that's currently down $1,200. Your equity is already $51,139.80. You only have $370.20 of buffer left for the day, even though your balance hasn't changed.
- Balance
- Equity
- The key difference
- Why it matters for your limits
