Account Value
a.k.a. Equity, Account equity
What your trading account is worth right now: your cash balance plus or minus the profit or loss on open trades.
Your account value (often shown as equity) is the live number. Your balance only changes when you close a trade; account value breathes with every tick of your open positions.
It matters because your broker watches it, not your balance, when deciding whether you have enough margin. If open losses drag account value too low, you can get a margin call even though your balance looks fine.
Balance vs account value
- Balance: $5,000. You have one open trade.
- That trade is down $400 right now.
- Account value = $5,000 − $400 = $4,600.
Bottom line: Your broker measures your margin against $4,600, not $5,000.
Looking at your balance and feeling safe while open losses quietly eat the account value underneath it.
Keep this word for good
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