NET ROI (Net Return on Investment) is a vital metric that helps traders assess the profitability of their trades.
In Tradezella, the NET ROI is calculated based on the adjusted COST/PROCEED of a trade. This adjusted COST/PROCEED represents the amount you spent on the trade!
The adjusted COST/PROCEED in TradeZella is calculated by multiplying the quantity (QTY) of the symbol traded by the multiplier and the price. This calculation yields the precise amount spent on a specific execution of a trade.
Here's an example of how Adjusted Cost is calculated for one of the trade executions:
QTY 10 * MULTIPLIER 1 * PRICE €15,827.80 = Adjusted Cost= €158,278
Here is an example of NET ROI being calculated in tradezella:
You invested $185199.56(Adjusted Cost/Proceed) in the trade, and the amount returned (including P&L) is $185113.24.
The formula for NET ROI is:
NET ROI = NET Gain from Investment - Cost of Investment - Commissions/ Cost of Investment * 100
NET ROI = ($185,113.24 - $185,199.56 - $0) / $185,199.56 * 100
NET ROI = -$86.32 / $185,199.56 * 100
NET ROI = -0.05% (Rounded off)
If you have any further questions or need additional assistance, please don't hesitate to reach out to our support team.