Skip to content
Centrino Capital

Equity Definition

Equity refers to ownership value in an asset after liabilities are subtracted, or the current value of a trading account.

Back to Glossary

What is Equity?

In investing, equity typically refers to shares representing ownership in a company.

In a trading account, equity reflects the balance plus or minus any floating profit or loss on open positions.

Example of Equity

A trading account with a $10,000 balance and an open position showing a $500 profit has $10,500 in equity.

Start Your Trading Journey

Register, fund, and start trading today, your path to smarter investing begins here.