What is Equity?
Quick answer
Equity is the current value of your account: your cash plus the market value of your open positions, minus anything you owe such as margin borrowing. It is what your account is actually worth right now, and it moves as your positions move. Risk controls like a daily-loss cap and margin requirements are measured against it.
Equity is the bottom-line value of your account at any moment. It is not just your cash, and not just your positions, but the combination, adjusted for anything you owe.
What equity means
Your account equity is your cash balance plus the current market value of your open positions, minus any liabilities like borrowed margin. Because it includes open positions valued at live prices, equity moves up and down as the market moves, even before you close anything. It is the truest measure of what your account is worth right now.
Why it matters in copy trading
Many risk controls are measured against equity. A daily-loss cap limits how far your equity can fall in a day, margin requirements are checked against it, and a drawdown is simply a drop in equity from a peak. Watching equity, rather than just cash or just open positions, gives you the real picture of how a copied strategy is affecting your account.
Frequently asked questions
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