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Tag: OTE Calculation

Two scales balance: one filled with paper gains, symbolizing positive Open Trade Equity; and another with losses, representing negative OTE.

Understanding Open Trade Equity (OTE) and its Role in Margin Investing

April 21, 2025 FinanceFacts101 Finance Policy

What is Open Trade Equity (OTE)? Open Trade Equity (OTE) represents the unrealized gains and losses on an investor’s open derivatives positions before they have been closed out. In simpler terms, OTE refers to the paper gains or losses that come with holding a financial instrument without actually settling it.

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