Cash

Cash on Cash Return Investopedia: Understanding Forex Trading

4 min read

Cash on Cash Return is a common metric used in real estate investing that measures the return to an investor from an income producing property. This metric is used to measure the investor’s initial investment in the property versus the annual pre-tax cash flow generated from the investment over a given period of time. Cash on Cash Return is often the key metric used by investors when comparing investment opportunities, allowing them to make an informed decision based on their own individual financial goals and specific financial situation.

Formula

Portfolio Beta Formula: Learn the Basics of Forex Trading

4 min read

Portfolio Beta is a metric used by Forex traders to measure the impact a single trade has on the overall investment portfolio. It measures the correlation between any given trade’s returns and the total portfolio’s returns. A Beta of 1.0 indicates that the trade is perfectly correlated with the total portfolio’s returns, while lower or higher values indicate a higher or lower correlation. Portfolio Beta is a powerful tool for traders to assess the overall risk level of a given trade and to optimize their trading strategies.