Balance vs Equity

Balance is the account figure reflecting only closed (realized) profit and loss. Equity adds the floating (unrealized) P/L of open positions — i.e. "what the account is worth if liquidated right now".

Equity = Balance + floating P/L of open positions

Why it matters

• The gap = the floating P/L you carry. If balance looks fine but equity is far below, unrealized losses are being held (common in averaging types).
• Stop-outs are judged on equity. So "balance-based DD is small but equity-based is dangerous" can happen.
• Margin level = equity ÷ required margin × 100. Below a threshold, positions are force-closed.