Account Values:
- Balance: The total value of completed trades, deposits, and withdrawals in a trading account. This number doesn’t include profits or losses from currently open positions. Example: After closing a profitable trade of +$500, balance increases from $10,000 to $10,500.
- Equity: The total value of a trading account at any moment, including the balance plus any unrealized profits or losses from open positions. For example, if the balance is $10,000 and open trades show +$500 profit, the equity would be $10,500.
Risk Management:
- Max Drawdown: A protective limit on total account losses. For example, with a 10% max drawdown on a $10,000 account, trading gets suspended if equity drops to $9,000 or below.
- Daily Drawdown: Similar to max drawdown but measured within a single day. For example, a 5% daily drawdown limit means losses cannot exceed 5% of equity during any single day.
- Smart Drawdown: A drawdown model that starts at -10% and adjusts to -5% after achieving a 5% gain. For example, on a $10,000 account, the initial drawdown limit is $9,000. After reaching $10,500 in balance, the drawdown limit adjusts to $9,500 permanently, changing only with account scaling. Learn more about Smart Drawdown here.
- Breach: When trading rules are violated, particularly exceeding drawdown limits. A breach leads to account deactivation. A new account can be purchased through the dashboard.
Account Growth & Trading:
- Scaling: A reward system for successful trading. This lets successful traders to grow their account size over time. Detailed scaling conditions can be found here.
- Spreads: The difference between the buy (ask) and sell (bid) prices. Example: If EURUSD has a buy price of 1.1002 and sell price of 1.1000, the spread is 0.0002 (2 pips). Lower spreads are generally better for traders.
- Payout (Withdrawal): Earned profits can be withdrawn to a preferred payment method—bank account or crypto wallet. More details here.
