Equity refers to the amount of money a trader has in their trading account (i.e. their Balance) plus or minus any profit or loss from open positions. If the trader doesn’t have any open positions, their equity is simply equal to their balance.
Equity = Balance + Credit +/- Floating profit and loss
Just like the balance, a trader’s equity is located in different places on the trading platform, depending on whether the trader is using the MT4 or the MT5 platform. On the MT4 Client Terminal, the equity is displayed in the Terminal window under the Trade tab. On the MT5, the Equity can be seen in the Toolbox under the Trade tab.
