Glossary / Glossary term
Balance and equity
Balance is the starting balance plus closed results, fees, funding and payouts; equity adds the open profit or loss of your positions at the mark price.
Two numbers describe an account, and the rules use both.
Balance
The starting balance, plus the result of every closed trade, minus trading fees, plus or minus funding payments, minus payouts. It changes only when something is booked: a fill, a funding payment, a payout.
Equity
The balance plus the open profit or loss of every position, valued at the composite mark price. It changes with every price move while a position is open, and it equals the balance when you are flat.
Which one the rules use
- The loss floors are checked against equity, at every moment. An open loss can breach an account before it is closed.
- The profit target is measured on the balance: open profit counts once you close.
- The daily anchor is the higher of balance and equity at 00:00 UTC.
The dashboard shows both numbers side by side, with the room left to each floor.
Related
- DrawdownDrawdown is the fall in an account from a reference point; prop firms turn it into loss floors that must not be crossed.
- Composite mark priceThe composite mark price combines the Bybit and Hyperliquid mark prices and decides equity and breaches, so one exchange cannot fail an account alone.
- Daily drawdown vs max drawdownTwo loss floors, measured differently: one resets every day, one never moves. Two worked examples show which one ends an account, and when.