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What is Equity? - Knowledgebase / Trading / Basics of Trading - INFINOX Client Services

What is Equity?

Equity represents the real-time value of your trading account.

It reflects your account balance adjusted for any open trades.




📊 Equity Formula

Equity = Balance + Unrealized Profit/Loss

Where:

  • Balance = Funds in your account excluding open trades

  • Unrealized Profit/Loss = Floating profit or loss from open positions




🔎 Why is Equity important?

  • It determines your available margin

  • It affects your margin level

  • It influences margin calls and stop-out levels

Equity changes in real time as market prices fluctuate.



⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading involves risk.


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