Definition
The largest percentage profit you made on a single closed trade.
Formula
Stocks | Crypto | Futures | Future Options | Equity Options | Index : Biggest % Profit = (Profit on Trade / Investment on Trade) * 100
Forex: Biggest % Profit = (Profit on Trade / Account Balance Prior to Trade) * 100
Examples
Stocks Example
- Investment: $1000
- Profit: $250
- Biggest % Profit: ($250 / $1000) * 100 = 25%
Forex Example
- Account Balance Prior to Trade: $5000
- Profit: $300
- Biggest % Profit: ($300 / $5000) * 100 = 6%
Key Points
- Outlier Identification: Helps you recognize particularly successful trades in terms of percentage return.
Considerations
- Investment vs. Account Balance: The percentage return calculation differs for traditional investments vs. forex trading:
- Traditional Investments: Percentage return is calculated based on the trade’s specific investment.
- Forex: Percentage return is often calculated based on the overall account balance before the trade took place.
