{"id":9450,"date":"2022-10-11T06:29:17","date_gmt":"2022-10-11T06:29:17","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9450"},"modified":"2022-10-11T06:29:17","modified_gmt":"2022-10-11T06:29:17","slug":"what-is-account-balance","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/11\/what-is-account-balance\/","title":{"rendered":"What is Account Balance?"},"content":{"rendered":"\n

What does \u201cAccount Balance\u201d mean?<\/p>\n\n\n\n

In order to start trading forex, you need to open an account<\/strong> with a retail forex broker or CFD provider.<\/p>\n\n\n\n

Once your account is approved, then you can transfer funds into the account.<\/p>\n\n\n\n

This new account should only be funded with \u201crisk capital\u201d, which is\u00a0cash you can afford to lose<\/strong>.\"Risk<\/p>\n\n\n\n

The \u201cAccount Balance<\/strong>\u201d or simply \u201cBalance<\/strong>\u201d is the starting balance of your account.<\/p>\n\n\n\n

Basically, it\u2019s the amount of CASH<\/strong> in your account.<\/p>\n\n\n\n

\"Cash<\/figure>\n\n\n\n

Think of it this way:<\/p>\n\n\n\n

Balance = Cash<\/pre>\n\n\n\n
Your Balance measures the amount of cash you have in your trading account.<\/p>\n\n\n\n
If you deposit<\/em> $1,000, then your Balance is $1,000.<\/strong><\/p>\n\n\n\n
\"Account<\/figure>\n\n\n\n
If you enter a new trade or in trader lingo, \u201copen a new position<\/strong>\u201d, your account balance is not affected until the position is CLOSED.<\/p>\n\n\n\n
This means that your Balance will only change in one of three ways:<\/p>\n\n\n\n
  1. When you add more funds<\/strong> to your account.<\/li>
  2. When you close a position<\/strong>.<\/li>
  3. When you keep a position open overnight and either receive or pay swap\/rollover fee<\/strong>.<\/li><\/ol>\n\n\n\n
    Since the topic is about margin, the concepts of swap and rollover aren\u2019t really related but for thoroughness, we\u2019ll quickly describe it since swap fees do affect your Balance.<\/strong><\/p>\n\n\n\n
    Just know that there\u2019s a difference between a trade that lasts a couple of hours and a trade you keep open overnight<\/em>.<\/p>\n\n\n\n
    \"rollover\"<\/figure>\n\n\n\n
    The procedure of moving open positions from one trading day to another is called a rollover<\/strong>.<\/p>\n\n\n\n
    Most brokers perform the rollover automatically<\/em> by closing any open positions at the end of the day, while simultaneously opening an identical position for the following business day.<\/p>\n\n\n\n
    During this rollover, a swap<\/strong> is calculated.<\/p>\n\n\n\n
    A\u00a0swap\u00a0is a\u00a0FEE that is either\u00a0paid or charged<\/strong>\u00a0to you at the end of each trading day if you keep your trade open overnight.<\/p>\n\n\n\n
    If you are paid swap, cash will be added<\/em> to your Balance.<\/p>\n\n\n\n
    If you are charged swap, cash will be deducted<\/em> from your Balance.<\/p>\n\n\n\n
    Unless you\u2019re trading huge position sizes, these swap fees are usually small but can add up over time.<\/strong><\/p>\n\n\n\n
    In MetaTrader, you can see swaps on your open position (if you keep it open for longer than 1 day) by opening a \u201cTerminal\u201d window and clicking on the \u201cTrade\u201d tab.<\/p>\n\n\n\n
    \"Swap<\/figure>\n\n\n\n
    The concept of swap and rollover is beyond the scope of this lesson and will not be discussed further, but we just wanted to cover if briefly for accuracy\u2019s sake.<\/p>\n\n\n\n
    Now that we know what Balance means, let\u2019s move on to understanding the concepts of \u201cUnrealized P\/L\u201d and \u201cRealized P\/L\u201d and how they affect your Balance.<\/p>\n","protected":false},"excerpt":{"rendered":"
    What does \u201cAccount Balance\u201d mean? In order to start trading forex, you need to open an account with a retail forex broker or CFD provider. Once your account is approved, then you can transfer funds into the account. This new account should only be funded with \u201crisk capital\u201d, which is\u00a0cash you can afford to lose. The \u201cAccount […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[896],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9450"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9450"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9450\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}