Understanding Forex Account Balance
Balance in Forex refers to the total amount of money currently available in your trading account.
Important Notes on Balance Calculation
- Exclusion of Open Positions: Your balance does not include any floating (unrealized) profits or losses associated with open trading positions.
- Balance Changes: The balance only changes once an open trade is closed, at which point the realized profit or loss is added to or subtracted from the balance amount.
Locating Your Account Balance
The display location for the balance amount depends on the trading platform you are using:
- MetaTrader 4 (MT4): The balance is displayed in the Terminal window under the Trade tab.
- MetaTrader 5 (MT5): The balance is located in the Toolbox under the Trade tab.
Detailed Summary
The account Balance in Forex trading represents the total monetary funds available in the account. Crucially, this figure excludes all floating profits or losses from currently open trading positions. The balance only updates and changes when a trade is closed, realizing the profit or loss. Users can locate this balance information within their trading platforms, specifically under the Trade tab in the Terminal window (MT4) or the Toolbox (MT5).
Key Takeaways
- Definition: Balance is the total amount of money available in a Forex trading account.
- Exclusion of Open Positions: The balance does not include unrealized (floating) profits or losses from active trades.
- Balance Changes: The balance only changes after a trade is closed, when realized profit or loss is added or subtracted.
- Location (MT4): Found in the Terminal window under the Trade tab.
- Location (MT5): Found in the Toolbox under the Trade tab.