What does balance mean in trading?

Cryptocurrency and finance are intertwined domains that require a deep understanding of both markets and technology. In this realm, professionals must navigate the complexities of digital assets and their implications on financial systems.

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services tailored to meet the needs of traders and investors. Among its offerings are spot trading, allowing users to buy and sell digital assets at current market prices.

BTCC also provides futures trading, enabling investors to speculate on the future price movements of cryptocurrencies. This service offers the potential for higher profits but also carries increased risks, making it essential to understand the market dynamics and manage risk accordingly.

One crucial aspect of cryptocurrency trading is understanding the concept of balance. This refers to the total cash available for trading on an individual's account. It encompasses all closed-out profits and losses, along with any deposits or withdrawals made to the trading account.

Equity, on the other hand, represents the floating profit and loss on top of the balance. It provides a real-time view of an investor's performance, taking into account the current market value of their positions.