Balance, Equity and Free Margin: What the Numbers in Your Terminal Mean
The four lines at the bottom of MetaTrader describe your account better than any statement. How balance differs from equity, and why equity is the one to watch.
There are four numbers at the bottom of the MetaTrader window, and most beginners watch the wrong one.
Balance
The sum of all closed operations: deposits, withdrawals, realised profits and losses. Open trades do not touch it. That is how an account can show a $10,000 balance while sitting one candle away from a stop-out.
Equity
Balance plus the running result of open positions. This is what the account is actually worth right now — what you would hold if you closed everything at once.
Equity = Balance + floating profit − floating loss.
Margin and free margin
Used margin is what is locked against open positions. Free margin is equity minus used margin: what you can still deploy.
Margin level
Equity / used margin × 100%. The one number worth watching continuously. Above 1000% the account is calm. 300–500% is a normal working range. Below 200% you are overloaded. 100% is a margin call.
The practical takeaway
Measure results by equity, not balance. A trader who reports profits while leaving losers open is deceiving himself first: balance climbs while equity sinks. Half the impressive screenshots online run on exactly this effect.
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Frequently asked questions
Why does my balance not move while a trade is open?
Balance records closed operations only. While a position is live its result sits in equity and only reaches balance at closing.
Which matters more, balance or equity?
Equity. It drives the margin level calculation and decides when the broker closes your trades. A healthy balance next to sinking equity means nothing.
Where does free margin go?
It equals equity minus used margin. As open positions move into loss, equity falls and free margin drains with it.
- Min. deposit
- $50
- Spread
- from 1.0 pip (Standard STP)
- Commission
- $3 per lot per side (Raw ECN)
CFDs are complex instruments with a high risk of losing money