# Return on Equity (RoE) and How It's Calculated

### Trade Layout <a href="#trade-layout" id="trade-layout"></a>

The PnL/RoE indicator visualization in the interface switch can be performed by changing the toggle on the '[Settings](https://margex.com/app/settings)' page of your Margex account.

* In order to switch between layouts, first, proceed to the '[Settings](https://margex.com/app/settings)' page of your Margex account:

<figure><img src="/files/1HpiWgYNOs2CThpai5bR" alt=""><figcaption></figcaption></figure>

* From there, press on the 'Trade Layout' switch:

<figure><img src="/files/DzsU3uW9UdknvRTfwtsg" alt=""><figcaption></figcaption></figure>

From now on, the RoE indicator would be reflected in your 'Trading Module' as the evaluation of your positions' performance.

### What is RoE and how it's calculated? <a href="#what-is-roe-and-how-its-calculated" id="what-is-roe-and-how-its-calculated"></a>

**Return on Equity** (ROE%), is an indicator which reflects the current **NET** performance of an open trade.

* <mark style="color:green;">Positive</mark> ROE means that the trade is currently profitable
* <mark style="color:red;">Negative</mark> ROE means that the trade is currently at a net loss currently

<figure><img src="/files/8kp7Gg5CyUIO94iIFu2s" alt=""><figcaption></figcaption></figure>

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 net profit of $20.

{% hint style="success" %}
ROE always takes into account not only the flat PnL from the price movement of the asset being traded - but also any associated [trade fees and funding](https://margex.com/margex-fees).&#x20;

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.

This provides traders with a fully transparent and precise ROE indicator.
{% endhint %}


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