What Does Balance Mean in MT4 and MT5?

The balance figure shown in the MT4 or MT5 terminal is one of the most basic but most commonly misunderstood values in a trading account. It represents the cash value of the account, but only the cash from settled activity, not from open positions whose prices are still moving. Understanding what balance is, what it includes, and how it differs from equity is fundamental for reading the platform correctly and managing risk.

This guide explains what balance means in MT4 and MT5, what changes it, where to find it on the platform, and why balance alone is not enough to make trading decisions.

What Is Balance in a Trading Account?

Balance is the realised cash value of a trading account. It reflects deposits, withdrawals, and the profit or loss from positions that have already been closed. It does not include any unrealised profit or loss from positions that are still open.

If a trader deposits USD 1,000 into a new account and has not yet traded, the balance is USD 1,000. If they then open a position and the position is showing an unrealised profit of USD 50, the balance is still USD 1,000. Only when that position is closed will the realised result be added to the balance.

Balance is sometimes called the cash balance for this reason. It is the figure that would be present if all open positions were ignored entirely.

What Changes Account Balance

Balance changes when one of the following happens.

A position is closed. The realised profit or loss is added to or subtracted from the balance at the moment the trade closes. This is the most common reason balance moves during active trading.

Funds are deposited. A successful deposit adds to the balance, generally as soon as the deposit clears.

Funds are withdrawn. A successful withdrawal subtracts from the balance.

Swap or financing is applied. Swap charges and credits on positions held past the daily rollover affect balance on the day they are applied. For forex, swap is generally credited or debited at 22:00 GMT daily, with Wednesday triple swap as a standard convention.

Commission is charged. On accounts that include commission-based pricing, the commission is debited from the balance at the time the position is opened. The commission covers both the open and close of the trade.

Other account-level adjustments. Less common events such as dividend adjustments on stock CFDs or dormancy fees can also affect balance.

What does not change balance is the price movement of open positions. A trade that is up several hundred dollars in unrealised profit does not change the balance until it is closed. The same applies to losses. This is why a trader can have a positive balance while open positions are in significant unrealised loss, and the reverse.

Balance vs Equity: The Key Difference

Equity is the second value shown next to balance in the MT4 and MT5 terminal. Equity is the real-time value of the account including unrealised profit or loss from open positions.

Equity = Balance + Unrealised P&L from open positions

When there are no open positions, equity equals balance. When there are open positions, equity and balance can differ significantly. A balance of USD 1,000 with an open position showing USD 200 of unrealised profit gives an equity of USD 1,200. The same balance with USD 300 of unrealised loss gives an equity of USD 700.

This distinction matters because equity, not balance, is used in margin calculations. The risk of a stop-out depends on equity relative to the margin used for open positions, not on the static balance figure.

Where to See Balance on MT4 and MT5

On the desktop terminal of MetaTrader 4 and MetaTrader 5, balance appears in the Trade tab of the Terminal window (MT4) or Toolbox window (MT5), which can be opened by pressing Ctrl+T. The Trade tab shows the current balance, equity, used margin, free margin and margin level all together, alongside any open positions and pending orders.

On the mobile and web versions of both platforms, the same values are accessible through the Trade tab in the navigation bar or the equivalent menu, depending on the version of the app.

The values update continuously as positions are placed, closed, or as swap and commission are applied.

Why Balance Alone Is Not Enough

A common mistake when starting out is to look only at balance to assess account performance or to decide on position sizing. Balance is a backward-looking figure. It tells the trader what has already settled. It does not tell them what is happening right now in open positions, what margin is being used, or how close the account is to a margin call.

For risk management, equity and margin level are more important than balance. Equity shows the live net worth of the account; margin level shows the cushion before automatic position closure. A growing balance with steadily worsening equity is a sign that the open positions are losing money even as closed trades happen to be profitable, which is not a healthy pattern.

Position sizing should be based on the equity or free margin of the account, not on balance, particularly when several positions are already open.

Trading at TIOmarkets

Trading at TIOmarkets is available on both MetaTrader 4 and MetaTrader 5, across desktop, web and mobile. The Standard account is created automatically on registration, with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. All accounts support hedging. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5, allowing followers to copy strategy providers in real time.

Spreads are variable and are typically higher than minimum figures shown. Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Commission and swap charges, where applicable, are debited or credited to balance directly. Details on commission and swap mechanics are available on the trading fees page.