Rate of Return Definition

Rate of return is the gain or loss on an investment over a period of time, expressed as a percentage of the initial investment.

What is Rate of Return?

It is used to compare the performance of different investments over the same period.

Rate of return can be calculated on a simple basis or annualized for longer-term comparisons.

An investment that grows from $1,000 to $1,100 in a year has a 10% rate of return.

A rally is a sustained period of rising prices in an asset or market, often following a decline or period of stability.

Range trading is a strategy that involves buying near support and selling near resistance within a defined price range.

Realized profit and loss is the actual gain or loss from a position that has already been closed.