Definition
What is Balance?
The balance is the value of a trading account from closed trades only; open profit or loss is not included until the position is closed.
Every time you close a trade, its result is added to or subtracted from the balance. Open positions do not change it.
The balance is the reference for many rules: profit targets are usually reached on balance, and payouts are calculated from realised profit.
Watching only the balance can be misleading while trades are open — always check equity too.
Example
Start at $100,000, close a winner of +$800 and a loser of -$300: balance $100,500. An open trade at +$1,000 does not change it until closed.
At a prop firm
At Axora Funded a phase is passed when the profit target is met on balance with no open positions, enough trading days and the consistency rule respected.
Frequently asked questions
Does an open trade change my balance?
No. Only closed trades change the balance.
Is the profit target measured on balance?
At Axora Funded, yes: the target counts on balance with all positions closed.