What is Equity and Symbol Specifications in MT4 Webtrader?

In the MT4 Webtrader, at the bottom of the screen you will find various details related to your trading equity. So what exactly are the terms that you see at the bottom of the screen pertaining to your account details?

MT4 Webtrader Terms

Profit: Profit section shows the current floating profit or loss on your open orders or trades. These tend to fluctuate depending on how the market moves. The Profit is not added or subtracted to the balance until the orders are closed. Balance: The Balance shows the total available balance in your trading account. Equity: Equity is a floating amount where the Profit is added or subtracted from the balance. A positive Profit would mean that your balance increases, while a negative Profit infers a lower balance if you close out your positions. The equity only provides a snapshot of how your account balance will be, should you close out all your open orders or trades. Margin: The margin amount shows the collateral that is required to maintain an open position. Margin is calculated as the [trade size x market price]/ leverage amount. Free Margin: After deducting the margin amount, this figure shows the available balance, also known as the Free Margin [Balance – Margin] = Free Margin. Margin Level: Margin level shows the percentage of equity being used. Margin level is calculated at [Equity / Margin] x 100

In the above example, a 0.1 lot EURUSD buy order was placed at the price of $1.1307. The account balance was $1000. The trade was currently running in a profit, therefore the Profit was showing $2, which brings the equity to $1002. For one mini lot (10,000 units), the required margin was (10,000 units x 1.1307)/200 = $56.53. When this amount ($56.53) is deducted from equity ($1000), it shows the free margin of $945.47. The margin level is 1772.35%, which is ($1002/$56.53) x 100

How to Read Symbol Specifications

The symbol or instrument section on the left side of the screen can be used to view the details on the instrument. Right click on the instrument of your choice, and select ‘Specification’ this is symbol specifications. This opens a window with details on the instrument.

• Spread: The spread on the instrument (difference between the bid and ask price)
• Digits: The number of digits after the decimal point
• Stop level: The minimum number of pips away from the market price where you can buy or sell
• Contract size: The number of units for 1 standard lot
• Margin currency: Currency used for margin
• Margin hedge: The number of units you can use to hedge
• Trading Minimum/Maximum: This is the minimum/maximum lot size you can trade
• Volume Step: The incremental value in increasing the lot sizes
• Swap Long/Short: The swaps charged on long or short positions
• Swap Type: By points, indicates the specified number of points of the security price

Swap points shows the units that will be added or deducted from your open position which is held overnight for every 100,000 units of position held. For example, if you hold a EURUSD buy position overnight -5.98USD will be deducted from your 1 lot position, or if you hold a EURUSD short position -3.9USD is deducted from your 1 lot position. Therefore, if your EURUSD long position was currently in profit at $200 overnight, then -$5.98 is deducted as swaps, bringing your net open position value to $194.02.