| Trading Terminology | ROI - Return On Investment
![](https://steemitimages.com/DQmbGzPrXrPoA9EsTxG3Lq3khZLdTW6GY1k8o34x9uZG2jC/Trading%20terminology%202.jpg)
But what does a return on investment actually mean?
The ROI shows the outcome of any particular investment and is shown as a percentage. This measurement can be used for personal financial decisions or to compare a company’s profitability. The return on investment can be calculated with an easy formula.
![](https://steemitimages.com/640x0/https://steemitimages.com/DQmdAHPqYLya92gKCCYirAcK5DFnMYCLxgTUteppDyPdSMd/ROI%20Formula.jpg)
When using the ROI measurement, note that the time value is not taken in consideration. For instance it’s more preferable to get a 15% return in 6 months than a 15% return in two years.
The base of everything ! :)
This post has received a 10.18 % upvote from @booster thanks to: @ourlifestory.