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RoE and Trade Interface Layout
Learn more about the PnL and RoE indicators in the trading module and how to switch between them
The PnL/RoE indicator visualization in the interface switch can be performed by changing the toggle on 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.
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
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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.