Two numbers you'll see constantly in MT5 and MatchTrader: here's what they each mean and why it matters.
Balance reflects the realised value of your account. It only changes when you close a trade, or when a reward or fee is processed. Open positions do not affect your balance.
Equity is your real-time account value. It includes your balance plus the current unrealised profit or loss on any open positions. Equity fluctuates continuously as the market moves.
| Balance | Equity | |
|---|---|---|
| Updates when | You close a trade | Every tick, in real time |
| Includes open P&L | No | Yes |
| Used for limits | Yes, for daily loss when balance > equity | Yes, for daily loss and max drawdown |
The daily loss limit is measured against your equity in real time, meaning floating losses on open trades count immediately. However, if your balance is higher than your equity at any point, the daily loss limit uses the balance as the reference instead. The maximum drawdown is always measured against equity.
Example: your balance is $52,340 and your daily loss limit is $1,570.20. You open a trade that's currently down $1,200. Your equity is already $51,139.80. You only have $370.20 of buffer left for the day, even though your balance hasn't changed.