I just had a question regarding Equity and Cash and what the difference is. In one of my demo accounts I have $5,000 in cash and $6,865 in equity. I see that when I make profits or losses it is reflected in my equity and not my cash. My question is, if this were real money and I wanted to withdraw it, would I only be able to withdraw the $5,000 cash? If so, how do I turn the equity into cash? And can someone explain the difference to me and how it works?
Going to take a stab at this, hehe
Thinking if you just liquate your positions your equity would go to zero, and your cash would go to $11,865. Most accounts will show your profit and losses from the position you got in at, while the positions are still open. All you have to do is sell or cover to lock in that profit. ;o)