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    What is Trading Account Status?

    5 Minutes
    Updated March 22, 2023 05:47

    Whenever you’re trading, you will encounter these terms and information about your trading performance.

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    some terms you’ll encounter in your trading journey

     

    Net P&L: The profit and loss for all open positions.

    How to calculate: the total of P&L of all open trades + (daily Overnight Funding rate x number of days).

     

    Balance: The amount after last closed trade.

    How to calculate: Deposits – Withdrawals + Realised Total P&L of closed positions (does not include the unrealised P&Ls on the open positions)

     

    Equity: the current value of the account including profit/loss of all open positions.

    How to calculate: Balance + Net P&L

    The difference between Balance and Equity;

    Balance reflects your profit/loss from closed positions.
    Equity reflects the real-time calculation of your profit/loss. Equity takes into account both open AND closed positions.

     

    Margin: the amount required to open and maintain all trade positions.

    How to calculate: % of the notional value (learn more at Margin)

     

    Maintenance Margin: The total minimum margin amount required to maintain the account when you hold a trade position

    How to calculate: Real-time contract value * maintenance margin ratio (%).
    Maintenance margin ratio (%) = margin ratio (%) * 50%

     

    Available Balance: amount available to be used for new positions or to withdraw.

    How to calculate: Equity – Margin

     

    Margin Level: percentage (%) value based on the amount of Equity versus Used Margin. The higher the Margin Level, the more Free Margin you have available to trade.

    How to calculate: (Equity / Margin) x 100%

     


     

    Your ‘Available Balance’, ‘Net P&L’ and ‘Equity’ are constantly calculated in-line with the market movements. If the ‘Equity’ touches or falls below the total of Maintenance Margin requirements your positions are at immediate risk of being liquidated.




    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.