If we have a trade that initially uses $10,000 in margin, and through various adjustments over the month, we added say another $5,000 into the the trade, giving a total requirement of $15,000.
Now, lets say the trade is closed out making $1,000 profit.
Here is the question - what is the return - do we calculate the ROI on the original capital in the trade or the capital utilised over the life of the trade?
Did we make 10% ( $1,000/$10,000) or, did we make 6.67% ($1,000/$15,000). ?
Cheers
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