Introduction

The aim of this page is to explain important terms to trades on Forex market. This will help to define the size of a position or configure properly an Expert Advisor like Wolfgrid (https://www.mql5.com/en/market/product/24726). I recommend to have a good understanding of those terms before to start trading on Forex market.

We will use the example below to undestand those key terms:

Balance

Balance shows the amount of deposited money in your trading account. The profit/loss of your orders will be added or deducted to/from your trading account balance when you close your orders.

In our example the balance is 1004.54 USD

Equity

Balance and Equity show the same values as long as there is not any open order. When you have open orders in your trading account, the Balance will not change and it will stay fixed but the Equity will be floated according to the profit/loss of your current orders. The formula is:

Equity = Balance + Profit&Loss