Equity = Balance ± floating profit and loss.
Margin=Equity - Margin
Marjin level=Equity / Margin
Here's what each term represents:
Balance: This is the total amount of funds in the trading account.
Used Margin: The margin that is currently tied up in open positions.
Free Margin: The funds you have available to open new trades or to absorb potential losses from existing trades.
Floating Profit and Loss: The unrealized profit or loss on open positions, which fluctuates with changes in the market.
The equity is essentially the net value of the trading account after accounting for the margin tied up in open positions and any floating profit or loss. It reflects the real-time value of the account and is a key factor in determining free margin for further trading activities.