Can someone help me out with this?
Your Usable Margin will always be equal to Equity less Used Margin.
Usable Margin = Equity – Used Margin
What exactly is equity?
That’s your account balance. So if you had $100 in your account and $20 being used for margin on an open position, then you still have $80 available.
That makes sense. Thanks
Basically equity is another way of saying usable magin right?
+/- the gain/loss of the open position.
Here’s another way of looking at it:
Equity = Balance + Floating Profit or Loss (from open positions)
So if you have $100 balance, and you’re floating a $20 loss on your open position, then your equity is now $80. Equity is showing you the current value of your account including your open positions.
Equity is your balance +/- open profit/losses. Simply put as soon as you open a trade your equity tells you what your balance would be should you close the trade.
equity = if you close ALL positions NOW. that will be the $$$
ok mine is a little red now lol