ROE (return on equity in trading)

ROE in trading is your profit or loss as a percent of the margin you posted, not of the position. At 10x a 1% move is 10% ROE, which makes it a bigger and more dangerous number than the price change, and fees on notional eat into it.

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In the help centreLearn what a perpetual contract is on Mochatrade
  • Round-trip trading costRound-trip cost is everything a trade costs from entry to exit: the spread twice, the fee twice, slippage, and funding…
  • Maker and taker feesA maker fee is charged when your order rests on the book and adds liquidity; a taker fee when it fills against a…
  • Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Notional valueNotional value is the full size of a position, price times quantity, whatever margin backs it: ₹50,000 of exposure on…
  • Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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