Account Balances

Balance: Deposits - Withdrawals + P&L of closed positions. Does not include the profit/loss of the current open positions.
Available Balance: Amount available to be used. Balance + P&L of open positions - Initial Margins.
P&L: The profit and loss for all open positions (Profit + Loss + Daily premium * number of days).
Equity: The current account valuation. Balance + P&L.

Example of an account balance:
You signed up and deposited $1000 via credit card

  • Balance: $1000. (Deposits - Withdrawals + P&L of closed positions)
  • P&L = $0. (Total profit and loss of all open positions including daily premiums)
  • Available Balance: $1000 (Balance + P&L of open positions - Initial Margins)
  • Equity: $1000 (Balance + P&L of open positions)

1.00pm - You buy 300 Silver Ounces at a market price of $20.00 with a Take Profit call when Silver reaches $25.00.

The total amount you bought is: 300*$20.00 = $5,000
The Margin needed for Silver is 10%: $500
If your equity falls below $250 you will get a Margin Call.

  • Balance: $1000
  • P&L = 0 (usually the spread of Silver is 5 cents so you would have a P&L of -$5)
  • The Available Balance after you bought the Silver is: $500. ($1000 - 10%*$5,000 = $500).
  • Equity is $1000 ($1000 + $0).

2:00pm - Silver jumps to $23.

  • 'Balance': $1000
  • 'P&'L: +$300. (100*$23-100*$20)
  • Available Balance: $800. ($1000 - 10%*$5,000 +$300= $800).
  • Equity: $1,300 ($1,000 + $300).

2:15pm – Silver jumps to $25 - Take Profit executes

Balance before the Take Profit executes.

  • Balance: $1,000
  • P&L: +$500. (100*$25-100 * $20)
  • Available Balance: $1,000. ($1000 - 10%*$5,000 + $500 = $1,000)
  • Equity: $1,500 ($1,000 + $500)

2:20pm - Your Take Profit executes. You make $500 on the deal.

  • Balance: $1,500
  • P&L: 0. (no open positions)
  • Available Balance: $1,500
  • Equity: $1,500