In trading, balance refers to the current account value of a trading account, excluding any unrealized profits or losses from open positions. It changes only through closed trades, deposits, withdrawals, fees, or swaps.
This distinguishes balance from equity, which also includes unrealized gains and losses from open positions.
For traders and investors, balance is an important reference point for assessing the actual account status after all transactions have been completed. It serves as the basis for calculating margin requirements, risk metrics, and performance reports.
A growing balance typically indicates a successful strategy, while declines may reflect realized losses, fees, or withdrawals.
