Basic account status parameters in the trading platform
Beginning traders, when opening their first transactions on the exchange, ask a lot of questions, although many of them can be answered directly in the trading platform.
The metatrader trading platform is distinguished not only by its functionality, but also by its information content; this allows you to get a lot of information simply by looking at the indicators of an open order.
The main thing is to know what all these numbers mean that appear after you clicked buy or sell and a new order appeared on the “Trading” tab.
At its core, this tab contains the most complete information on the funds in your account; open positions in the trading platform you just need to know how to use it.
Some of the parameters are intuitive, while others require some explanation:
Balance – the amount of funds in the deposit before the first trade, indicating the currency in which the deposit is held. This does not take into account the financial results of open positions.
Equity – the total amount of funds, taking into account the financial results of open trades. If all trades are closed, this amount will be moved to the balance.
Margin is perhaps one of the most interesting indicators, and the one that raises the most questions. It shows the amount of collateral supporting a trade. Margin is calculated quite simply: the amount of funds required to open a trade divided by leverage.
In our case, 1 lot in euros is equal to = 105261 dollars/100 = 1052.61 dollars, the leverage on this account is 1:100. Thanks to this simple formula, you can always calculate how much funds will be reserved when opening an order of a given volume.
Free margin refers to the funds available as collateral when opening new orders. Calculated using the formula Equity - Margin, it takes into account not only funds used to support other trades but also the current financial result (profit or loss).
Level – or, to be more precise, margin level, or the ratio of equity to margin. The higher the level, the lower the risk for an open trade. This indicator is displayed as a percentage.
Profit is the main indicator characterizing the financial result of a transaction; the indicator can have both a positive and a negative sign.
After you close all trades, the trading tab will only display your balance, equity, and free margin. The displayed amount will be the same.
