A balance is the amount you currently possess in your trading account. When a trader makes an initial deposit, let’s assume of 1000 Euro, they can see in the trading platform, generally in the Terminal window under the Balance, 1000 Euro, or the equivalent if the trading account is in another currency. The balance will remain the same at the opening of a trade, but will change when the position (buy or sell) is closed. After closing the position the profit will be added to the balance or the loss will be deducted from the balance.
E.g. A trader with 1000 EUR balance opens 2 trades. On one trade makes a profit of 110 EUR and on the second a loss of 50 EUR.
Balance: 1000 EUR
Profit for trade 1: 110 EUR
Profit for trade 2: -50 EUR
Balance after closing both trades = 1000 + 110 - 50 = 1060 EUR
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