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Your questions, our answers

  1. VT Markets Help Centre
  2. Trading Condition
  3. Calculation
You may also want to know
  • How to calculate Notional Value?
  • How are spreads calculated?
  • What are the fees and commissions for trading with VT Markets?
  • What is the formula for calculating the profit/loss of a CFD position?
  • What are swap or overnight fees, and how are they calculated?
  • What is the difference between balance and equity? How are they calculated?
  • What is the difference between pips and point/pipettes?
  • What is the formula for calculating the pip value?
  • How is the margin requirement calculated?

What is the difference between balance and equity? How are they calculated?

Equity represents the total amount of funds available for trading, including any unrealised gains or losses. Balance is the total amount of funds you can withdraw, excluding any open positions.

Balance = Deposit + Withdrawal + Closed PnL + Fees
Equity = Balance + Floating PnL + Credit

Related articles

  • What is the difference between equity and balance?
  • What is the difference between pips and point/pipettes?
  • What are swap or overnight fees, and how are they calculated?
  • Why did my account balance become negative? How do I fix it?
  • How long does it take for a withdrawal to arrive?

Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.

The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.

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VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.

VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.

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