Return on Equity (RoE) and how it's calculated

Return on Equity or ROE (i.e ROI), is an indicator which reflects the current NET performance of an open trade. Positive ROE means that the trade is profitable while negative ROE means that the trade is at a loss currently, taking into account the price movement of the asset being traded, as well as all trade fees and funding


ROE is calculated based on the trader’s Margin reserved for a trade, using the following formula:

ROE% = (Unrealized PnL + Realized PnL - CloseOrderCommission) / Margin

For example, if a trader has used $100 as Margin for a position, a ROE value of +20% will mean that the trade is essentially at a profit of $20.

When initially opening a position, the ROE% indicator will show a negative value. This is due to the ROE% indicator taking into account the opening and closing trade fees which are incurred for the position, thus providing a more accurate reflection of the current state of the trade.