In plain English
What Account balance means
When no positions are open, account balance and account equity are often the same. Once a trade is open, balance usually stays unchanged while the platform separately updates unrealized profit and loss as prices move. Brokers may show pending charges, credits, or settlement-related items differently, so the account statement and platform definitions control the displayed figure.
Why it matters
Balance is useful for tracking completed activity and cash movements, but it is not always the amount currently available to absorb market losses. In a leveraged account, open losses can reduce equity and free margin well before they are reflected in balance after a position closes.
Example
A trader deposits $5,000 and closes trades with a net $200 profit after all booked costs. The account balance becomes $5,200. The trader then opens a position showing an unrealized loss of $150. Balance remains $5,200, while equity would be about $5,050, assuming no other adjustments.
Quick answers
Common questions
Why does my account balance not change when an open trade moves?+
Most platforms record the changing value of an open position as unrealized profit or loss rather than altering balance. The result normally affects balance when the position is closed or when the broker posts an adjustment.
Is account balance the same as account equity?+
Not while there are open positions with unrealized profit or loss. Equity generally reflects balance plus or minus the current value change of open positions, along with any applicable account adjustments.
Sources