What Is Cash on Cash Return In Forex Trading?
Cash on cash return (CoCR) is an important metric used in the Forex market that measures the return on a trader’s investment by taking into account only the cash invested in the trading activity. In other words, it is a measurement of the cash income generated by a trader’s trades. It is used to assess the rate of return of an individual’s trading account. It is calculated by dividing the amount of profits or losses generated in a certain period of time by the amount of capital that was used to fund the trading account. CoCR can provide a useful assessment of a trader’s skill level and strategies as they seek to generate returns from the Forex market.