What are the Balance, Equity, Margin, Free Margin and Margin Level formulas?
The balance shows the amount of money deposited in your trading account. The profit or loss of your orders will be added to or deducted from your trading account balance once you close your orders.
When you have open orders in your trading account, the balance will not change and will stay fixed, but the equity will be floated according to the profit or loss of your current orders.
Please note that the Fxglory bonus will be added to the equity. So, the equity formula is like the following:
Margin is the amount of money that is used to open a trade, and it is calculated based on leverage.
Volume is contract size * lot size
Free margin is the difference between your account equity and the open positions’ margin.
As long as you do not have any open orders in your trading account, your account equity and free margin are the same as your account balance.
The margin level shows the state of a trader’s trading account. It is the ratio of equity to margin.
