When trading on the MetaTrader platform with Ox Securities Ltd, "Balance" and "Equity" are two key terms that represent different aspects of a trader's account value.
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Balance: This refers to the total amount of money in your trading account. It includes the profits and losses from closed trades but does not include the results of open trades.
Your balance changes only when you close a trade, adding profits or subtracting losses from your account's total funds.
- Equity: This is a more dynamic number that represents the current account balance plus or minus the profits or losses of any open trades. In other words, equity reflects the real-time value of your account if you were to close all your open positions at the current market prices. Equity can fluctuate significantly during periods of high market volatility, especially if you have open positions.
Importance of Understanding Balance and Equity
Understanding the distinction between balance and equity is crucial for effective risk management and decision-making in trading. While balance provides a historical perspective of your account's performance, equity offers a real-time snapshot of your account's worth, taking into account all unrealized profits or losses from open positions.
It's always recommended to monitor both these values regularly to maintain a good understanding of your trading account's health and performance while trading with Ox Securities Ltd on the MT4 and MT5 platforms.
If you have specific questions about your account or need further clarification, it's best to contact Ox Securities directly for assistance.
For more information:
https://oxsecurities.com/account/client-verification-process/
https://oxsecurities.com/about-us/legal-documents/
https://oxsecurities.com/trading-accounts/account-types/
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