Internal Rate of Return Formula in Forex Trading: Calculations & Applications

The Internal Rate of Return (IRR) is an important formula for the foreign exchange (forex) market. It measures the return that an investor can expect from a currency investment, taking into account any taxes and other expenses. This formula is used to compare different types of investments in terms of their potential return, costs, risks and other factors. When trading forex, understanding the Internal Rate of Return formula can help a trader make more informed decisions when deciding which currency to invest in.

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