TW.PR
Fun Poster
- Messages
- 566
- Joined
- Oct 8, 2011
- Messages
- 566
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Equity
At Trader’s Way, Prime Online Forex and CFD broker, we ensure that our clients are able to access the latest trading tools and applications, streamlined quotes, advanced charting tools and analysis. We encourage all traders, especially those new to forex trading, to review our edu resources to get a read on the all the terms used in currency trading. Here’s a brief recap on Equity. When a trader closes all his open positions, the balance is termed “Equity”.
Equity stands for the balance, after adding P/L:
Equity = Balance + P&L
Example: Sam's balance is 2,000 USD. Before he opens any positions, his equity = his balance = 2,000 USD. Sam buys 1 standard lot of EURUSD. The price goes up and his P&L is 1,000 USD. Now Sam's equity = his balance + P&L = 2,000 USD + 1,000 USD = 3,000USD.
For more information on equity, please check out Trader’s Way.
At Trader’s Way, Prime Online Forex and CFD broker, we ensure that our clients are able to access the latest trading tools and applications, streamlined quotes, advanced charting tools and analysis. We encourage all traders, especially those new to forex trading, to review our edu resources to get a read on the all the terms used in currency trading. Here’s a brief recap on Equity. When a trader closes all his open positions, the balance is termed “Equity”.
Equity stands for the balance, after adding P/L:
Equity = Balance + P&L
Example: Sam's balance is 2,000 USD. Before he opens any positions, his equity = his balance = 2,000 USD. Sam buys 1 standard lot of EURUSD. The price goes up and his P&L is 1,000 USD. Now Sam's equity = his balance + P&L = 2,000 USD + 1,000 USD = 3,000USD.
For more information on equity, please check out Trader’s Way.