Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most of clients lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure.

What is the difference between balance and equity in MT4?

In MT4, balance and equity are two key financial metrics that help traders understand their account status.

Balance:
This is the total amount of money in your trading account from closed trades. It doesn’t include any profits or losses from open positions.

Equity:
This is the total value of your account, including your balance and the current value of any open positions. It shows how much your account is worth right now, taking into account unrealized gains or losses.

It is calculated as:
Equity = balance + unrealized PNL