Evaluate trade performance after price moves and fees.

ROI and profit/loss are the quickest ways to assess a trade. Profit/loss shows the absolute gain or loss, while ROI shows how efficient the trade was relative to the capital used. Together they give you a complete picture of performance.

Profit/Loss explained

Profit or loss is the difference between entry and exit price, multiplied by quantity. For long trades, price going up is profit. For short trades, price going down is profit. This is the raw number that tells you how much you made or lost.

ROI explained

ROI (return on investment) is net profit divided by the capital used. It allows you to compare trades of different sizes. A smaller trade with a higher ROI can be better than a larger trade with a lower ROI.

In spot trades, capital used is the notional value. In leveraged trades, some traders use margin for ROI. The TradeOrbit calculator uses notional for a consistent comparison, and you can adjust your interpretation if you prefer margin-based ROI.

Fees and break-even

Fees reduce profitability on both entry and exit. Even small fees can significantly impact short-term trades. The calculator includes fee inputs and shows the break-even price so you know the minimum move required to cover costs.

Example

Buy 0.1 BTC at 42,000 and sell at 46,000:

• Gross profit = (46,000 - 42,000) × 0.1 = $400
• If fees are 0.1% per side, net profit is slightly lower
• ROI = net profit ÷ notional

This makes it clear whether the trade meets your target after costs.

Using ROI to compare trades

ROI allows you to evaluate:

• Different timeframes
• Different assets
• Different strategies

It also helps you identify whether you are taking trades that are worth the risk, not just the dollar value.

Common mistakes

• Ignoring fees and funding costs.
• Comparing raw profit across trades of different sizes.
• Forgetting that shorts invert the profit formula.
• Using ROI without considering risk or drawdown.

Key takeaways

• Profit/Loss shows absolute performance.
• ROI shows efficiency relative to capital.
• Fees and break-even levels matter more than most traders expect.

Use the TradeOrbit ROI/PnL calculator to test multiple exit scenarios and optimize your trade plan.