Equity

Fundamentals

The total value of a trading account, including cash and the current value of all open positions. Equity fluctuates in real time as open positions change value.

Related Terms

Drawdown

The peak-to-trough decline in an account or portfolio value, typically expressed as a percentage.

Margin

Borrowed money from a broker to purchase securities.

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Why Risk Management Is Everything

Level 4: Risk & Money Management · 15 min