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In trading, Return on Investment (ROI) is a metric that measures the profitability of a trade or investment. It's calculated as the net profit divided by the cost of the investment, and expressed as a percentage. A higher ROI indicates a more profitable trade.

Here's a breakdown:

What it is:

ROI is a financial ratio that assesses the profitability of an investment relative to its cost.

How it's calculated:

The basic formula is: (Net Profit / Cost of Investment) \* 100%.

Why it's important:

ROI helps traders evaluate the effectiveness of their trading strategies, compare different investments, and make informed decisions about risk and allocation of capital.

SPEAKERDharmendra RajbharTrainer

PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.

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