Consider a hydraulic jack with massless pistons as follows.

The famous equation for this system is
$$ \frac{F_1}{A_1}=\frac{F_2}{A_2} $$
My question is why isn't the equation as follows?
$$ \frac{F_1}{A_1}=\frac{F_2}{A_2} + \rho g h $$
It is based on my understanding that any points in the same horizontal line have the same pressure.
Could you spot my misconception?