help with ROI

[trader44]

Can anyone help with the ROI of trading profits . my question is if i lay a horse say at 6 for £50 then back it back at 15 for £20 for a green book of £30 is my ROI based on all the money i have invested in that trade ie £50 for the lay and £20 for the back so total invested is £70 or is it just the lay i have had ..thanks in advance

[Dallas]

Its quiet subjective and depends how you want to view it, most would say your initial stake/max liability is your outlay and then any profit/loss is your ROI from that.

[trader44]

cheers dallas so am guessing there are different variations of it

[spreadbetting]

I'd generally calculate it from my inital exposure and the closing bet irrelevant. So in your example your initial investment would be £250 and not £50 or £70.

Like Dallas says people calculate it in so many different ways, all I'd say is make sure you're always consistent with your approach and avoid falling into the trap of exaggerating any ROI, unless you're trying to sell some system of course

[trader44]

cheers for that

[trader44]

"avoid falling into the trap of exaggerating any ROI, unless you're trying to sell some system of course "
very funny

[Berts Certs]

Can anyone help with the ROI of trading profits . my question is if i lay a horse say at 6 for £50 then back it back at 15 for £20 for a green book of £30 is my ROI based on all the money i have invested in that trade ie £50 for the lay and £20 for the back so total invested is £70 or is it just the lay i have had ..thanks in advance

It is based on exposure, lay usually being more than back.