Round trip
Opening and then closing one position, for example buying a stock and later selling it. Costs are often quoted per round trip.
In plain English
Every trade has two halves: getting in and getting out. A round trip is both halves together, and you pay costs on each of them.
Uncle Gary explains
A round trip is a taxi to the airport and back. You pay both ways, even if you forgot your passport and achieved nothing.
Why it matters for your money
A strategy that trades often pays this toll again and again. Our golden cross test charged 0.05% per round trip for buying and 0.30% for shorting.
Where we tested it
- Does the Golden Cross Work? We Tested 72 Strategies
- Does Buying the Dip Work? We Checked Which Dips
- Does Volume Confirm the Trend? Sometimes It Contradicts It
- Should You Buy Stocks After Good Earnings? Post-Earnings Drift, Tested
- Lesson 22: Statistically Significant Doesn't Mean Important: Effect Size
Related terms
All glossary terms. Educational content, not financial advice.