Balance, equity, and floating drawdown in account monitoring
One number rarely describes a Forex account. Balance reflects booked results, while equity helps show the effect of currently open positions.
What balance means
Balance is the account value reported by the trading terminal. It normally reflects closed trading results and deposit or withdrawal operations, but not the current floating result of open positions.
What equity means
Equity is the terminal's current valuation of account funds, including the floating result and other adjustments reported by the terminal. Equity can therefore be either below or above balance.
How to read floating drawdown
When equity is below balance, the gap reflects the current negative revaluation of open positions. Watch FX displays floating drawdown from terminal data and helps track how it changes over time.
Why different currencies are not added together
Watch FX groups overview amounts by account currency. USD, EUR, and other currencies stay separate because combining them without an explicit, current conversion rate would create an artificial total.