Equity is the current condition (net-worth) of the Customer’s account. It includes all customer’s trades and transactions made in the account, whether they are closed or still in open position. In general, a computation formula can be represented as follows:
EQUITY = BALANCE + FLOATING PROFIT/LOSS and plus or minus Rollover Points, where the FLOATING PROFIT/LOSS are the current unrealized profits/losses in the open positions.
Balance is an amount held on the Customer’s account, which can be changed depending on the Customer’s performance on the market. Amendments are reflected on the balance only after a transaction is completed. Thus, the profit and loss open positions are not included in the balance.
