The account total without including unrealised P&L — only changes when a trade is closed or money moves in/out.
Balance and equity match when no trades are open. Balance is the 'realised' view; equity is the 'mark-to-market' view.
Open full pageAn account denominated in cents — $10 deposit shows as $1,000 balance, letting beginners trade with realistic-feeling sizes on tiny capital.
Cent accounts solve the 'demo to live' problem: traders can experience real psychology with negligible financial risk. Common at certain offshore brokers; rarely available at Tier-1 entities.
Also called: micro account
Open full pageA practice trading account funded with virtual money — fills, balances, and P&L are simulated.
Demo accounts are essential for learning platforms, testing strategies, and forward-testing EAs. Limitations: execution is often better than live (no realistic slippage), and psychology is fundamentally different when no real money is at risk.
Also called: paper account, practice account
Open full pageA broker that gives clients direct access to the underlying market's order book — typical of CFD providers, less common in spot FX.
DMA lets traders interact directly with liquidity providers' order books rather than the broker's bucket. Spreads can be tighter and execution more transparent, at the cost of higher account minimums and complexity.
Also called: DMA
Open full pageElectronic Communication Network broker — routes client orders directly to a network of liquidity providers, no dealing desk.
True ECN brokers earn from commission and never trade against client orders. Spreads are 'raw' (close to interbank) and commission is added on top. Best execution model for scalpers and high-volume traders.
Also called: ECN
Open full pageAccount balance plus unrealised P&L on open positions — the true current value of the account.
Equity differs from balance whenever you have open trades. Balance updates only on closed trades; equity updates tick-by-tick with open P&L.
Equity = Balance + Unrealised P&L on open positions
The portion of account equity not currently tied up as margin for open positions — available to open new trades.
Free margin = Equity − Used margin. As open trades go in/out of profit, free margin breathes accordingly. When free margin hits zero, no new trades can open; when used margin exceeds equity, margin call territory.
Also called: available margin
Free Margin = Equity − Used Margin
An account that charges no swap interest — compliant with Sharia law's prohibition on riba (interest).
Islamic accounts replace swap with a small per-night admin fee on positions held past rollover (after a free grace period). Most reputable brokers offer them to Muslim traders on request.
Also called: swap-free account
Open full pageThe multiple of your account size you're allowed to trade — 1:100 leverage means $1,000 controls $100,000 notional.
Leverage amplifies both gains and losses. A 1% price move on a fully leveraged 1:100 position is a 100% P&L move on the underlying margin. Regulated retail leverage caps: 1:30 (ESMA/FCA majors), 1:50 (NFA US majors), up to 1:500–1:1000 (offshore).
Also called: margin ratio
1:100 leverage. To trade 1 standard lot of EUR/USD (€100,000) you need $1,000 margin (and the equivalent value in EUR).
Leverage = Position notional / Margin used
Beginners blow up by using max leverage as license to oversize. The right size depends on stop distance and risk per trade, not on the broker's leverage cap.
A real-money trading account funded with the trader's own capital — actual gains and losses.
Most brokers offer multiple live account types (standard, ECN, raw spread, cent, Islamic, etc.) with different commission models, minimums, and leverage caps.
Also called: real account
Open full pageThe collateral required to open a position — a percentage of the notional value, set by leverage.
Margin is the 'down payment' your broker requires to let you control a leveraged position. With 1:100 leverage, margin = 1% of notional. With 1:30, margin = ~3.3%.
Also called: required margin
Trade 1.0 lot EUR/USD = €100,000 notional. With 1:100 leverage, margin required = €1,000.
Margin = Position notional / Leverage ratio
A broker warning that account equity has fallen close to used margin — deposit more or face liquidation.
Margin call levels vary by broker (commonly 100% or 80%). Brokers may notify by email, in-platform, or simply auto-close positions when the stop-out level is reached.
Also called: margin warning
Open full pageAccount equity as a percentage of used margin — the key metric brokers watch for margin calls.
Margin level above 1000% = comfortable. Below 200% = approach margin call territory. Below 100% = margin call. Below stop-out level (typically 20–50%) = broker auto-closes worst trades.
Also called: margin %
Margin Level = (Equity / Used Margin) × 100%
A broker that takes the other side of client trades — provides liquidity in-house rather than routing to external LPs.
Market makers (B-book brokers) profit when clients lose. Reputable market makers run sophisticated risk-management (off-loading large exposures to A-book) and don't manipulate prices, but the model creates an inherent conflict of interest.
Also called: MM, B-book broker, dealing desk
Open full pageA broker that doesn't operate a dealing desk — orders go straight to liquidity providers. Umbrella term for ECN + STP.
NDD is the broad category covering both pure-ECN brokers and STP brokers. Marketing differentiates them, but the practical difference for traders is usually small (commission model vs spread markup).
Also called: NDD
Open full pagePercentage Allocation Management Module — pooled account managed by a single trader, with profits/losses allocated by share.
PAMM lets investors deposit into a manager's strategy without giving up custody of their own funds. The manager trades the pool; gains and losses are allocated proportionally. Manager earns a performance fee.
Also called: PAMM
Open full pageThe default live account type — typically commission-free with spreads marked up to compensate.
Standard accounts work for retail traders who prefer simplicity (no commission line item) over the tighter raw spreads of ECN accounts. Total cost is usually similar; the distribution between spread and commission differs.
Open full pageThe margin level at which the broker forcibly closes losing positions to prevent further losses.
Stop-out is the last line of defence against an account going negative. Typical levels: 20% (offshore, high leverage) to 50% (Tier-1 regulated). Closes start with the worst-performing trade.
Also called: stop out level, liquidation
Open full pageStraight-Through Processing — orders pass directly to liquidity providers, but broker may aggregate or mark up spreads.
STP brokers don't run a dealing desk but may add a small markup to the raw spread. The execution path is similar to ECN; the revenue model differs.
Also called: STP
Open full pageThe portion of account equity currently posted as collateral for open positions — funds you can't deploy to new trades.
Used margin grows as you open positions and shrinks as you close them. Held constant if positions remain open, regardless of P&L.
Also called: committed margin
Open full page