3️⃣Return on Equity (RoE) and How It's Calculated

Return on Equity (ROE) is an indicator that reflects the performance of a trade. Positive ROE means that the trade is profitable while negative ROE means that the trade is currently at a loss.

Trade Layout

The PnL/RoE indicator visualization in the interface switch can be performed by changing the toggle on the 'Settings' page of your Margex account.

• In order to switch between layouts, first, proceed to the 'Settings' page of your Margex account:

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

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?

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

• Positive ROE means that the trade is currently profitable

• Negative ROE means that the trade is currently at a net loss currently

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.

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.

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.