Cash

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.

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Cash

What is Cash on Cash Return? – An Introduction to Forex Trading

Cash on cash return Forex is a measure of the profitability of a foreign exchange (FOREX) investment relative to the initial investment. It is particularly useful for evaluating the potential return over a short period of time without needing to consider any of the longer-term considerations associated with investing in foreign exchange. The cash on cash return Forex is calculated by dividing the cumulative gross profits generated by the foreign exchange investment by the total amount of the initial capital investment. This can offer investors an easy way to compare returns over short time frames or to assess the effectiveness of their strategies over time.

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