You have $1,000 in your wallet. That is your balance. You also bought a ticket and have not sold it yet. The ticket price goes up and down, but your wallet does not change. Wallet plus ticket is your equity: what you have now. Drag the ticket price to see it.

Your balance is the money in your account from closed trades and deposits. It only changes when a trade is closed, so an open trade does not touch it.

Equity is your balance plus the profit or loss of your open trades. It moves live with the market. Up $2 on an open trade means equity is $1,002 while balance stays at $1,000.

When you close the trade, the result becomes real and the balance updates. With no open trades, balance and equity are the same number.

Balance can hide a floating loss. A $1,000 balance with a trade down $300 means equity is only $700. Your broker watches equity, so you should too. In MT5 both sit on the Trade tab.

Balance is your closed money. Equity is balance plus open trades. Figures are illustrative.