Equity

Equity refers to the ownership value a trader or investor has in an asset, account, or company. In trading, especially in a margin account, equity represents the current value of an account, including open positions. It is calculated as the account balance plus or minus any unrealized profits or losses from active trades. For example, if a trader has a balance of $5,000 and an open trade showing a $200 profit, the equity is $5,200.

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