London, United Kingdom
+447351578251
info@traders.mba

Round Turn

Support Centre

Welcome to our Support Centre! Simply use the search box below to find the answers you need.

If you cannot find the answer, then Call, WhatsApp, or Email our support team.
We’re always happy to help!

Table of Contents

Round Turn

Understanding Round Turn

A Round Turn refers to the completion of a full trade cycle, consisting of both a buy (entry) and a sell (exit) order. In financial markets, a round turn measures the total cost of executing a trade, including commissions and fees. It is commonly used in forex, futures, and stock trading to assess trading costs and performance.

For example, if a trader buys 1 contract of GBP/USD and later sells 1 contract of GBP/USD, this constitutes one round turn. Trading platforms and brokers often charge fees based on round turns rather than single trades.

How Round Turn Works

A round turn is a two-step process:

  1. Opening a Position – A trader enters a market by buying (long) or selling (short) an asset.
  2. Closing a Position – The trade is completed when the trader sells (if they bought) or buys back (if they shorted) the asset.

Example of Round Turn in Different Markets

  • Forex Trading: A trader buys EUR/USD at 1.1000 and sells at 1.1050—this is one round turn.
  • Futures Trading: A trader buys one oil futures contract and later sells it—one round turn is completed.
  • Stock Trading: Buying 100 shares of Apple and later selling them completes a round turn.
  • Trading Costs – Brokers often charge commissions per round turn, increasing costs for frequent traders.
  • Execution Slippage – Prices may change between entry and exit, affecting profit margins.
  • Market Volatility – Rapid price movements can impact the effectiveness of round-turn strategies.

Step-by-Step Solutions for Managing Round Turn Costs

  1. Choose Low-Cost Brokers – Opt for brokers with competitive round-turn fees to reduce trading expenses.
  2. Optimise Trade Execution – Use limit orders to avoid slippage and improve trade entry/exit.
  3. Monitor Market Conditions – Avoid trading during high volatility periods to minimise unexpected losses.
  4. Use Scalping or Swing Strategies Wisely – Frequent round turns can lead to higher costs, so ensure the strategy justifies expenses.
  5. Understand Broker Fee Structures – Check if commissions are charged per leg (one-way) or per round turn (full trade cycle).

FAQs

What is a round turn in trading?

A round turn is a completed trade cycle that includes both an entry and exit order.

Why do brokers charge fees based on round turns?

Brokers charge round-turn fees because it accounts for the full execution of a trade.

How is a round turn different from a single trade?

A single trade is either an entry or an exit, while a round turn includes both.

How does round turn affect trading costs?

Higher trading frequency increases round-turn costs, impacting overall profitability.

Do forex traders pay round-turn fees?

Yes, some forex brokers charge commissions based on round turns, while others use spreads.

What is a round-turn commission?

It is a brokerage fee applied to the total cost of opening and closing a trade.

How can traders reduce round-turn costs?

By choosing brokers with low commissions and optimising trade execution.

Do futures contracts use round-turn pricing?

Yes, futures brokers often charge commission fees per round turn.

Is a round turn relevant for long-term investors?

Less so, as long-term investors make fewer trades, reducing round-turn costs.

Can algorithmic traders benefit from round-turn strategies?

Yes, but they must account for high trading frequency costs when using automated systems.

Disclaimer: The content on this site is for informational and educational purposes only and does not constitute financial, investment, or legal advice. We disclaim all financial liability for reliance on this content. By using this site, you agree to these terms; if not, do not use it. Sach Capital Limited, trading as Traders MBA, is registered in England and Wales (No. 08869885). Trading CFDs is high-risk; 74%-89% of retail accounts lose money.