Equity is the current value of the account and fluctuates with every tick when looking at your trading platform on your screen.

It is the sum of your account balance and all floating (unrealized) profits or losses associated with your open positions.

## How to Calculate If You Have No Trades Open

If you do NOT have any open positions, then your Equity is the same as your Balance.

Equity = Account Balance

## How to Calculate If You Have Trades Open

If you have open positions, your equity is the sum of your account balance and your account’s floating P/L.

Equity = Account Balance + Floating Profits (or Losses)

### Example: When an Existing Trade is Losing

Elon Musk tweets that she’s shorting GBP/USD.  Because he is Elon, you follow what she says and go short also.

Price moves immediately against you and your trade shows a floating loss of \$50.

Equity = Account Balance + Floating Profits (or Losses) \$950 = \$1,000 + (-\$50)

The Equity in your account is now \$950.

### Example: When an Existing Trade is Winning

Elon tweets again and says he has changed his mind. He is now long GBP/USD.

But because Elon is incredibly successful, you follow what he says and go long also.