ROE vs ROI in Trading: What's the Difference?

Two percentages show up on every leveraged trade — ROI and ROE — and confusing them leads to nasty surprises. Here's the difference in 60 seconds.

ROI — the raw price move

Price ROI is simply how far the asset moved. BTC from $60,000 to $63,600 is a +6% ROI. It says nothing about leverage.

ROE — return on your money

ROE (return on equity) is your return on the margin you actually posted, which leverage multiplies. That same 6% move at 10× leverage is roughly a 60% ROE — you made 60% on the cash you put up.

Why it matters

ROE is what actually happens to your account — and it cuts both ways. The same 6% against you at 10× is a 60% loss of margin. High ROE numbers look thrilling, but they're a direct measure of how much risk your leverage is adding. Watch ROE, not just the price chart.