1. Balance
This is the amount of money in your account excluding open trades.
It reflects your deposited funds, plus any profits from closed trades, minus any losses from closed trades.
Example: If you deposited $10,000 and made $2,000 in profits (but closed the trades), your balance would be $12,000.
2. Equity
This is your real-time account value, considering open trades.
It includes your balance plus or minus any floating profit or loss from open positions.
Formula:
Equity = Balance + Floating P/L
Example:
Your balance is $12,000.
You have an open trade with a $1,000 floating profit.
Your Equity = $13,000.
3. Credit
Credit usually represents bonus funds or promotional capital provided by the broker.
Some brokers also use credit to represent loans or temporary margin support.
It does not contribute to your withdrawable balance but can help maintain margin requirements.
Example:
Your broker gives you a $2,000 trading bonus.
Your balance stays at $12,000, but Credit = $2,000.
Your total trading power (Equity) = Balance + Credit + Floating P/L.
Key Takeaways
✅ Balance → Total closed profits/losses and deposits.
✅ Equity → Your actual account value, including open trades.
✅ Credit → Broker-given funds (bonuses, margin support, etc.).