Return is measured based on the account balance at the start of the trade. The dollars made in profit are then divided by the starting balance to get the percentage return.
Example:
$40 return divided by $200 account balance = 20%
Return is measured based on the account balance at the start of the trade. The dollars made in profit are then divided by the starting balance to get the percentage return.
Example:
$40 return divided by $200 account balance = 20%