Average equity

Average equity

A customer's average daily balance in a trading account at a brokerage firm.

Average Equity

The average value that a client has invested in a brokerage account. That is, it is the cash value of the securities the client has bought with his/her own money, rather than what he/she has bought on margin. Brokerages calculate the average equity on a daily basis to ensure that clients are meeting margin requirements. See also: Mark-to-market.