Categories: Capital

Return on Capital” in Forex Trading: Understanding ROI

Return on capital in the Forex market is the amount of gain or loss on a trade relative to the capital invested. This return is determined by analyzing the difference between entry and exit prices and taking into account any fees associated with the trade. Successful Forex traders aim to maximize return on capital while minimizing risk. To do this, they apply a wide range of strategies to assess market conditions, develop a trading plan, and execute trades at favorable entry and exit prices. Over the longer term, success in the Forex market is about capital preservation and achieving positive returns.

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