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.