What is equity?
In accounting and finance, equity is the residual claim ofin assets, after all are paid. If liability exceeds assets, negative equity exists. Simplified, you can see equity as ownership.
Example: Aowner takes out a mortgage to buy the property. The equity the owner has is the difference between the outstanding debt to the mortgage and the current market value of the property.
In an accounting context,' equity represents the remaining claim on assets of a company, spread among individual shareholders of common or preferred stock.
In trading, equity is usually used as describing the shares or stock owned in a company, or other type of. In this sense, equity is one of the main used in and .
If your strategy involvestrading, then equity can refer to the value of a security in your margin account, after excluding the funds borrowed from your broker.
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