Account Balance
Quick Answer
Account balance is the amount recorded in a trading account after posted deposits, withdrawals, closed-trade results, and applicable charges or credits. On platforms such as MetaTrader 5, it is displayed in the account’s deposit currency and excludes profit or loss from positions that are still open.
How does account balance work?
A balance begins with funds credited to the account. It changes when a completed transaction is posted—for example, a deposit, withdrawal, realised trading result, commission, fee, swap, or another authorised adjustment. Labels and posting rules may differ by platform or provider.
When a position remains open, its unrealised, or “floating”, profit or loss normally affects equity rather than balance under MetaTrader 5’s reporting convention. After the position closes and its result is posted, the realised outcome is reflected in the balance.
A simplified relationship is:
Account balance = deposits − withdrawals + realised profits − realised losses − posted costs ± other balance adjustments
This formula is a practical explanation rather than a universal accounting rule. Traders should use the definitions and statement entries supplied for their specific account.
Key features of account balance
The following characteristics distinguish account balance from other trading-account figures:
Account currency: The value is recorded in the account’s deposit currency.
Posted transactions: Deposits, withdrawals, realised trade results and applicable charges can change the figure.
Separate from floating profit or loss: Open-position results are generally reflected in equity instead of balance.
Account history: Statements and reports show starting and ending balances and the transactions behind changes.
Different from free margin: Balance alone does not show how much capital remains available to support open or new positions.
Simple account balance example
Suppose a trader starts with $5,000, deposits $1,000, closes one trade with a $250 profit, closes another with a $100 loss, pays $20 in posted costs and withdraws $500.
$5,000 + $1,000 + $250 − $100 − $20 − $500 = $5,630 account balance
If an open position then has an unrealised loss of $300, the balance remains $5,630, while equity would be $5,330, assuming no other credits or adjustments. The floating loss affects equity rather than the recorded balance until the position is closed and its result is posted.
This example is illustrative. It does not represent expected trading performance or actual FxGrow account conditions.
Potential benefits and uses
Monitoring account balance may help traders track cumulative realised results, deposits, withdrawals and posted charges. It can also support statement reconciliation and help identify an unexpected transaction or fee.
The US Commodity Futures Trading Commission advises customers to review account statements and trade confirmations carefully, including gains, losses, balances, account activity, commissions, fees and other charges.
Risks, limitations and common misconceptions
Account balance does not provide a complete view of current account risk. A large unrealised loss may reduce equity even though the displayed balance has not changed. Balance is also not the same as equity, margin, free margin or necessarily the amount currently available for withdrawal.
A common misconception is that account balance changes continuously with market prices. Under the MetaTrader 5 reporting convention, floating profit or loss changes equity, while balance changes when relevant trading results or cash operations are posted. Balance should therefore be read alongside equity, margin information and transaction history.