When trading, it’s important to understand the key components of your account in MetaTrader. These values help you manage your positions, control risk, and make informed decisions.
Account Balance
The total amount of money in your account excluding any open positions. If you plan to withdraw funds, your balance is the amount available. However, reducing your balance also lowers your equity, which can increase the risk of a stop-out. That’s why we check your margin level before every withdrawal.
- Includes: Deposits, withdrawals, and closed trade results.
- Does NOT include Floating profits or losses from open trades.
Equity
Equity shows your actual funds if all positions were closed at that moment and all Profits or Loss would be settled to your account balance.
Equity = Account Balance + Floating Profit/Loss
Free Margin (Available Funds)
The amount of money available to open new trades.
- Formula: Free Margin = Equity – Margin Used
- Why it matters: Free margin ensures you have enough funds to maintain existing positions and open new ones.
Example of Key Account Metrics
Let’s assume you’ve deposited $1,000 into your new trading account:
- Account Balance: $1,000
You place your first trade, and it currently shows a $6 profit:
- Floating Profit: $50
- Equity = $1,000 + $50 = $1,050
To open this trade, you need funds reserved as margin:
- Used Margin: $428.19
▶️(Read about Margin Requirements)
Your Free Margin is what’s left for new trades:
- Free Margin = $1,050 – $428.19 = $621.82
Finally, you can calculate your Margin Level, which acts as your account’s “health indicator”:
- Margin Level = 245.22%
▶️(Check out Understanding Margin Level)