Here’s a clear explanation of the difference between balance and equity.
Balance:
Your balance is the total amount in your account after all closed trades. It does not change while you have open positions.
Example: You start with $100,000 and close a trade with +$2,000 profit, your new balance is $102,000.
Equity:
Your equity is your real-time account value, including both closed and open trades (profits or losses).
Example: You start with $100,000, and you currently have an open trade with +$2,000 floating profit, your equity is $102,000, while your balance is still $100,000.