CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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What is the difference between balance and equity in MT5?
In MT5, balance represents funds from closed trades only, while equity is the real-time account value including balance and unrealized profits or losses from open positions. Equity = balance + unrealized PNL.
Balance vs equity
Term
Meaning
Includes open trade profit/loss?
Balance
The account value after completed transactions, such as deposits, withdrawals, and closed trades.
No
Equity
The real-time value of the account after including unrealized profit or loss from open trades.
Yes
Formula
Equity = Balance + Unrealized Profit/Loss
Example
Scenario
Balance
Unrealized P/L
Equity
Open trade is in profit
1,000
+100
1,100
Open trade is in loss
1,000
-100
900
No open trades
1,000
0
1,000
Important notes
Balance changes after closed trades, deposits, withdrawals, fees, or adjustments.
Equity changes in real time when there are open positions.
Margin level is calculated based on equity, not balance alone.
If there are no open positions, balance and equity are usually the same.
