balance - definition

In forex trading, balance is the total amount of funds in your trading account excluding any open positions. It reflects your account's settled cash position — deposits plus closed-trade profit/loss minus withdrawals — and updates only when a trade is closed. Balance does not account for floating profit or loss from currently open trades; that is the role of equity.

Formula

Balance = Deposits – Withdrawals + Closed-Trade P/L

Example

You deposit AUD 10,000 into your AUFXBroker account. You open a long EUR/AUD trade, which you later close for a AUD 500 profit. Your balance becomes:

AUD 10,000 – AUD 0 + AUD 500 = AUD 10,500

Your balance remains AUD 10,500 even if you have other open trades with floating losses.

Edge cases

Negative balance: In Australia, ASIC-regulated brokers like AUFXBroker must provide negative balance protection for retail clients, meaning your balance cannot fall below zero regardless of market conditions.
JPY-pair rounding: For JPY-denominated accounts or pairs, balance calculations use standard rounding to the nearest yen; fractional pips do not affect the settled balance.
Non-standard conventions: Some brokers display "balance" inclusive of unrealised P/L on pending orders — AUFXBroker does not; pending orders affect equity only until filled.

See also