Source: https://mochatrade.com/learn/glossary/roe

# ROE (return on equity in trading)
URL: https://mochatrade.com/learn/glossary/roe
Last modified: 2026-10-17

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](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough) than the price change, and [fees on notional eat into it](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained).

## Related terms

- Round-trip trading cost: https://mochatrade.com/learn/glossary/round-trip-trading-cost
- Maker and taker fees: https://mochatrade.com/learn/glossary/maker-and-taker-fees
- Funding rate: https://mochatrade.com/learn/glossary/funding-rate
- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Notional value: https://mochatrade.com/learn/glossary/notional-value
- Margin trading: https://mochatrade.com/learn/glossary/margin-trading

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