Brokers, Exchanges & Your Account

Learn Brokers, Exchanges & Your Account — part of our Trading Foundations series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

How you access markets

A broker (forex/CFD) or exchange (stocks/crypto) provides the platform, pricing, and order routing. You deposit funds, place orders through their software (MT4, MT5, TradingView broker, exchange app), and positions are tracked in your account.

Account basics

  • Balance — cash in the account.
  • Equity — balance plus/minus open profit/loss.
  • Margin — collateral reserved for open leveraged positions.
  • Free margin — equity minus used margin; needed to open new trades.
Equity = Balance + Floating P/LBalance+Open P/L=Equity
Never trade with money you cannot afford to lose. Verify broker regulation and read their risk disclosure documents.