Equity and balance in forex can be confusing for some people. In Simple words, balance is the amount of money in your broker account, and the Equity equals balance minus margin and net profit and loss.
In the mathematical term: Equity = Balance – Margin ± Profit and Loss.
Balance does not change when you have open positions. It only changes when you close a position. If you profit, the balance goes higher than the initial balance, and if you lose, your new balance will be lower than the initial balance.
On the other hand, the Equity amount changes when you have open positions. It changes every second as the price in the market changes.
