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Forex Basics

Balance

The total amount of funds in your trading account, excluding unrealized profits or losses.

Full Definition

Balance is the cash value of your trading account after all closed trades are settled, without counting any floating profit or loss from open positions. It represents the real money sitting in your account at a given moment.

Your balance only changes when a trade closes, a deposit clears, or a withdrawal is processed. While trades remain open, their profits and losses are reflected in equity rather than balance. This distinction matters because equity can swing sharply on open positions while balance stays flat until you close them.

For example, if your balance is $10,000 and you open a trade that is currently up $200, your balance remains $10,000 but your equity is $10,200. Once you close that trade, the $200 profit moves from unrealized equity into realized balance, making your new balance $10,200. Losses work the same way in reverse.

In copy trading, balance is the stable figure that only changes when trades close or cash moves in or out of your account. SteadyFlowFX's position sizing is calculated from your equity rather than balance when open trades are present, ensuring that proportional sizing reflects your true account value. Understanding the difference between balance and equity helps subscribers read their account statement accurately throughout the trading day.

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