What Is “Account Balance” in Forex Trading?
Before trading forex, you’ll need to open a trading account with a broker and fund it—ideally using only risk capital (money you can afford to lose).
The Account Balance, often just called “Balance,” refers to the total amount of actual cash in your account.
For example, if you deposit $1,000, your Balance is $1,000.
This amount remains unchanged while your trades are open. Your Balance only changes when:
- You deposit or withdraw funds
- You close a position (realized profit or loss is applied)
- You earn or pay a swap fee for holding positions overnight
A swap is a fee applied during the rollover process when a trade is carried over to the next trading day. Depending on the trade and the currencies involved, you may either pay or receive a swap. These adjustments are added to or deducted from your Balance automatically by your broker.
Swap fees are usually small but can add up over time.
While swaps and rollovers aren’t the focus of this lesson, it's important to know they can affect your Balance. We’ll cover more about unrealized and realized profit/loss next and how those impact your overall account metrics.