In MetaTrader 4 (MT4), the key account metrics—Balance, Equity, Margin, Free Margin, and Margin Level—show your trading account status and help decide whether to open or close positions. These appear in the Terminal tab for constant monitoring.
Despite many trading platforms available, MetaTrader 4 remains the most popular for Forex trading due to its intuitive interface that requires no special training. Even basic metrics can confuse beginners.
Рис.1. Кнопка вызова вкладки «Терминал»
Рис. 2. Показатели торгового счета
Balance in MT4: What It Shows
Balance displays the total cash on your trading account, excluding profit or loss from open positions. It only includes deposited funds and results from closed trades.
For example, starting with $10,000, closing one trade with $500 profit and another with $498 loss gives a 10,000 + 500 – 498 = 10,002 dollar balance.
Equity: Current Account Value
Equity differs from Balance by including unrealized profit/loss from open positions. It shows what your Balance would be if all open trades closed now.
For example, with a $10,002 Balance and an open EUR/USD buy trade showing $22 loss, Equity is 10,002 – 22 = 9,980 dollars. Closing the trade would update Balance to this amount.
Margin (Deposit): Funds Blocked for Trades
Margin shows the funds reserved to open positions, enabled by leverage. Higher leverage means lower margin: 1:10 requires 10% of the trade value, 1:100 requires 1%.
For example, buying 1 standard lot (100,000 euros) of EUR/USD at 1.11995 needs $111,995. With 1:200 leverage, margin is 111,995 : 200 = 559.98 dollars (rounded from 559.975).
Free Margin: Funds Available for New Trades
Free Margin is the amount available for new positions, calculated as Free Margin = Equity – Margin.
In the example, Free Margin is 9,980 (Equity) – 559.98 (Margin) = 9,420.03 dollars (rounded).
Margin Level: Risk Indicator Formula and Meaning
Margin Level is the ratio of Equity to Margin, shown as a percentage: (Equity / Margin) × 100%.
In the example, it is 9,980 (Equity) : 559.98 (Margin) × 100% = 1782.22%. It measures trade stability: more open trades or growing losses lower this level. Brokers set thresholds where positions close automatically if it drops too low, often surprising unaware traders.
Understanding these metrics lets traders assess risks accurately, grow their Balance, and avoid margin calls.
FAQ
What is the difference between Balance and Equity in MT4?
Balance shows cash from deposits and closed trades only. Equity includes unrealized profit/loss from open positions.
How is Free Margin calculated?
Free Margin = Equity minus used Margin, showing funds available for new trades.
What happens if Margin Level drops too low?
Brokers force-close positions at a set threshold (often 20-100%) to prevent further losses, known as a margin call.
