Balance and equity
Formula
balance = starting balance + closed profit and loss
equity = balance + open (floating) profit and loss
Balance changes only when a trade closes, including its commission and swap. Equity moves on every tick while a trade is open. With no open trades, the two are the same number.
Which rule reads which, at FundedTick
| Rule | Measured on | Why |
|---|---|---|
| Profit target | Balance | A pass should be banked, not a floating number that can vanish |
| Daily drawdown | Equity, against a floor set from balance at the reset | An open loss is a real loss until it is closed |
| Total drawdown | Equity | The same reason, against a static floor |
| Max floating risk (two-step) | Open loss, against current balance | Caps how much is underwater at once |
Worked example
Two-step, stage 1, $10,000 account: the target is 5%, so the stage passes when balance reaches $10,500.
| Situation | Balance | Equity | Result |
|---|---|---|---|
| One trade open, $300 up | $10,300 | $10,600 | Not passed: balance is below the target |
| Close that trade | $10,600 | $10,600 | Passed, the moment it closes |
| One trade open, $1,050 down | $10,000 | $8,950 | Breached: equity is below the $9,000 floor |
Where to watch each one
MetaTrader shows Balance and Equity at the bottom of the Trade tab. The account history records closed trades, so a balance curve can look safe on a day equity crossed a floor. Watch equity against the floors, and balance against the target.
The FundedTick trader panel charts both lines on every account and shows the live distance to each floor.