What is online trading?
Forex trading (also known as foreign exchange or FX trading), is the purchasing and selling of foreign currencies, with the objective of profiting from movements in currency prices.
Forex trades occur online, as the currencies are not physically traded. The trader and trading platform undertake to fulfil their obligations of buying or selling the amount specified. The contract ends by offsetting it against an opposite position, resulting in the profit and loss of the contractual parties.
The Forex market has no physical location and no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another. This lack of a physical exchange enables the Forex market to operate on a 24-hour basis, moving from one-time zone to the next.
In order to trade on the forex market, investors need to open an account with a broker and make a deposit. From there, the trader must monitor the market to buy a currency pair when they predict it will appreciate, and sell it when they predict it will depreciate.
Why trade the Forex Market
Trading can be done anywhere in the world, where internet access is available. This enables you to trade from the comfort of your home, or even when on holiday or while travelling abroad. You will save on expenses for office space.
A trader may take advantage of profitable market conditions at any time. There is no waiting for the opening bell. The International Currency Markets are open continuously from Monday mornings (approximately 02:00 SAST) to Friday evening (23:00 SAST time)
A trade in stocks is normally done over a time-frame of weeks and months. The time-frame for a trade in Forex is minutes and hours
Due to the factor of gearing (leverage) it is possible to take huge profits on trades
A trader can enter or exit the market at will in almost any market condition with minimal execution risk
The spread is the difference between the bid and the asking price. Spreads in the Forex market tend to be much less (or tighter) than the spreads applied to other securities such as stocks.
A trade in the Forex Market involves selling or buying one currency against another. There is limited correlation between the foreign currency market and the stock market. A bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying that currency against other currencies. Conversely, if the outlook is pessimistic, we have a bear market for that currency and traders may profit by selling the currency against other currencies. In either case, there is always a good trading opportunity for the trader.
The backbone of the Forex Market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the Equity markets. The Forex market operates in a manner similar to the way the NASDAQ market in the United States operates; thus it is also referred to as an over-the-counter (OTC) market.
The Forex Market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. As the market has grown, even central bank interventions have become increasingly ineffectual and short lived as a tool for controlling the value of a particular currency.
Risks Involved in Forex Trading
As it was mentioned above, trading on the Forex Market is essentially risk-bearing. Risks in trading fall into the following categories: exchange rate risk, interest rate risk, credit risk and country risk.
Dictatorship (sovereign) risk refers to the government’s interference in the Forex activity. Although theoretically present in all foreign exchange instruments, currency futures are, for all practical purposes, excepted from country risk, because the major currency futures markets are in the USA. Hence, traders have to realize that kind of the risk and be able to account possible administrative restrictions.
Interest rate risk
Interest rate risk refers to the profit and loss generated by fluctuations in the forward spreads, along with forward amount mismatches and maturity gaps among transactions in the foreign exchange book. The risk is pertinent to currency swaps, forward outright, futures and options.
To minimize interest rate risk, one sets limits on the total size of mismatches. A common approach is to separate the mismatches, based on their maturity dates, into up to six months and past six months.
Credit risk refers to the possibility that an outstanding currency position may not be repaid as agreed, due to a voluntary action by a counter party. The following forms of credit risk are known:
• Replacement risk occurs when counterparties of the failed bank find their books are subjected to the danger of not receiving refunds from the bank, where appropriate accounts became unbalanced.
• Settlement risk occurs because of the time zone on different continents. Consequently, currencies may be traded at the different price at different times during the trading day.
Therefore, payment may be made to a party that will declare insolvency (or be declared insolvent) immediately after, but prior to executing its own payments. Therefore, in assessing the credit risk, end users must consider not only the market value of their currency portfolios, but also the potential exposure of these portfolios. The potential exposure may be determined through probability analysis over the time to maturity of the outstanding position. The computerized systems currently available are very useful for implementing credit risk policies. Credit lines are easily monitored.
Exchange rate risk
Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes.
The most popular measures to cut losses short and ride profitable positions, so that losses should be kept within manageable limits, are the position limit and the loss limit. By using the position limitation, a maximum amount of a certain currency a trader can carry at any single time during the regular trading hours, is established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.
How to trade online
Placing a trade in the foreign exchange market is simple, with mechanics similar to those found in other financial markets. The objective of forex trading is to exchange one currency for another, with the expectation that the price will change. Trading forex via CFDs requires an account with a leveraged trading provider.
Open an IFX account
- Our application process is simple and secure, thanks to our online application form.
- Once we’ve successfully completed the verification process, you’ll receive an account number via email, confirming that your account is open.
- Shortly after that, our account managers will contact you to answer any additional questions that you may have.
Fund your Account
- Once your account is open, you’ll need to deposit funds into it to start trading. Simply click the Deposit Now tab in your Trader’s Room and you’ll find a variety of ways to deposit.
- We do not stipulate a minimum initial deposit, so you are welcome to start with any amount you are comfortable with.
- For more information on how you can transfer funds in and out of your account, see our help and support section conveniently located in your myiFXBrokers trading room.
- Now that you have an online trading account and have deposited funds, you can start trading
- Log in, choose the instrument you wish to trade, and open a position.
- You can access live price feeds, streaming charts and news instantly and trade 24-hours a day
- For real time specifications on the instrument you wish to trade, select the Market Watch icon and navigate to Specification section
Terms you need to know
Average Directional Index (Technical Indicator)
The sum of government spending, personal consumption expenditures, and business expenditures.
A currency is said to “appreciate” when it strengthens in price in response to market demand.
The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Dealer jargon used in quoting when the forward premium/discount is near parity. For example, “two-two around” would translate into 2 points to either side of the present spot.
The rate at which a financial instrument if offered for sale (as in bid/ask spread).
Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor’s objectives.
Average True Range (Technical Indicator)
Australian Dollar (ISO code)
he departments and processes related to the settlement of financial transactions.
The value of a country’s exports minus its imports.
Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length/height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar.
In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the ‘base’ currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.
Bolinger Bands (Tecnical Indicator)
A market distinguished by declining prices.
The rate at which a trader is willing to buy a currency.
The difference between the bid and offer price, and the most widely used measure of market liquidity.
Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. “30/35”.
Bank of Canada
Bank of England
Bank of Japan
In a professional trading environment, a ‘book’ is the summary of a trader’s or desk’s total positions.
An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a ‘dealer’ commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
A market distinguished by rising prices.
Germany’s Central Bank.
In the forex market currencies are always priced in pairs; therefore, all trades result in the simultaneous buying of one currency and the selling of another. The objective of currency trading is to buy the currency that increases in value relative to the one you sold. If you have bought a currency and the price appreciates in value, then you must sell the currency back in order to lock in the profit.
Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800’s.
CANADIAN DOLLAR (ISO CODE)
A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.
Chicago Board of Trade
Commodity Channel Index (technical indicator) also Consumer Confidence Index (economic indicator)
A government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank. others include the ECB, BOE, BOJ.
Chartered Financial Analyst
Contract For Difference
Commodity Futures Trading Commission (regulatory)
Swiss Franc (Confederation Helvetia Franc)
An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.
A market with no spread. All trades buys and sells occur at that one price
The process of settling a trade.
Chicago Mercantile Exchange
Chinese Yuan (ISO code)
A transaction fee charged by a broker.
The tendency of an economic crisis to spread from one market to another. In 1997, financial instability in Thailand caused high volatility in its domestic currency, the Baht, which triggered a contagion into other East Asian emerging currencies, and then to Latin America. It is now referred to as the Asian Contagion
A document exchanged by counterparts to a transaction that states the terms of said transaction.
The standard unit of trading.
The standard unit of trading on certain exchanges.
Commitments of Traders (market report)
One of the participants in a financial transaction.
Risk associated with a cross-border transaction, including but not limited to legal and political conditions such as war etc.
Consumer Price Index (economic indicator)
The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency. Foreign exchange rate between two currencies other than the U.S. dollar, the currency in which most exchanges are usually quoted.
Commodity Selection Index (technical indicator)
Commodity Trading Advisor
Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
In most currency pairs the quoted currency is USD (U.S. dollar). For example, in the EURUSD pair the base currency is EUR, and the quoted one- USD. But there are a few exceptions, where the base currency is the USD – for example, USDCHF (U.S. dollar / Swiss franc).
the probability of an adverse change in exchange rates.
Refers to positions which are opened and closed on the same trading day.
Drawdown also Due Diligence also Dealing Desk see NDD
An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
A negative balance of trade or payments.
An FX trade where both sides make and take actual delivery of the currencies traded.
A fall in the value of a currency due to market forces.
A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
The deliberate downward adjustment of a currency’s price, normally by official announcement.
Dow Jones Industrial Average
European Central Bank
Electronic Communication Network also Electronic Currency Network
Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy, and are therefore responsible for the underlying shifts in supply and demand for that currency.
Exponential Moving Average (technical indicator)
An order to buy or sell at a specified price. This order remains open until the end of the trading day which is typically 5PM ET.
Exchange Traded Fund
Euro (ISO code). since 2002 the Euro has been the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU). Members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
Elliott Wave (theory)
Futures Commission Merchant
Forex Dealer Member
Federal Reserve System
The regulatory agency responsible for administering bank depository insurance in the US.
The central bank of the United States, with responsibility for implementing the country’s monetary policy and regulating member banks of the System. The Fed was created in 1913 and is composed of 12 regional Federal Reserve Banks and a national Board of Governors
First In, First Out
Official rate set by monetary authorities for one or more currencies
Floating exchange rates refer to the value of a currency as decided by supply and demand
Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.
Federal Open Market Committee
(Forex, FX) is the simultaneous buying of one currency while selling for another. This market of exchange has more buyers and sellers and daily volume than any other in the world. Taking place in the major financial institutions across the globe, the forex market is open 24-hours a day.
The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
A forward contract fixes the exchange rate for future delivery at a date to be agreed by both participants. A deposit (or a minimum margin) is usually required in forward transactions. For example, if I want to lock in today’s rate to buy $10,000 USD at 1.5820
Canadian for the next 4 months, I will have the ability to purchase up to $10,000 USD at this rate.
A Forward Rate refers to a cash price of 2 currencies interest difference for a fixed term. Forward rates can be calculated easily given the fixed term interest rates of each currency and the current spot rate
Forward trading is making the opposite trade of a spot trade in a given period of time. Often investors will swap their trades forward for anywhere from a week or two up to several months depending on the time frame of the investment. Even though a forward trade is on a future date, the position can be closed out at any time. The closing part of the position is then swapped forward to the same future value date
The pips added to or subtracted from the current exchange rate to calculate a forward price.
Focusses on the economic forces of supply and demand that causes price movement. The Fundamentalist studies the causes of market movement, whereas the Technician studies the effects.
An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts – ETC), versus forwards, which are considered Over the Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
Great Britain Pound Sterling (ISO code)
Gross Domestic Product (economic indicator)
Also known as margin trading. A term used to in the relationship of actual equity versus controlling equity.
Greenwich Mean Time
Was a term coined back in the mid-1900s to describe an economy that was not too hot and not too cold. This typically describes an economy that enjoyed steady growth with nominal rate of inflation.
An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
Are five leading industrial nations (France, Japan, Germany, the UK and US), which meet from time-to-time to discuss common economic problems.
Are 7 leading non-communist industrial nations composed of G5 plus Canada and Italy.
Is also known as The Paris Club which includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, UK and US. These nations signed an accord in 1962 to increase the fund available to the IMF and aid member countries with balance-of- payments difficulties.
A hedging transaction is a purchase or sale of a financial product, having as its purpose the elimination of loss arising from price fluctuations. With regards to currency transactions it would protect one against fluctuations in the foreign exchange rate. (see Forward Contract)
Higher Low (chart)
Introducing Broker also Interbank also Interactive Brokers also Inside Bar
International Monetary Fund
An economic condition whereby prices for consumer goods rise, eroding purchasing power.
The initial deposit of collateral required to enter into a position as a guarantee on future performance.
The Foreign Exchange rates at which large international banks quote other large international banks.
International Organization for Standardization
Japanese Yen (ISO code)
Statistics that are considered to predict future economic activity.
The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.
An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (ie 101.50)
The Line Chart connects single prices for a selected time period.
The ability of a market to accept large transaction with minimal to no impact on price stability.
The closing of an existing position through the execution of an offsetting transaction.
Lower High (chart)
Linearly Weighted Moving Average (technical indicator)
A position that appreciates in value if market prices increase. When one buys a currency, their position is long.
Moving Average (technical indicator)
Moving Average Convergence Divergence (technical indicator)
The required equity that an investor must deposit to collateralize a position.
The margin deposit is not a down payment on a purchase of equity, as many perceive margins to be in the stock markets. Rather, the margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows traders to hold a position much larger than the account value, which allow for this high leverage.
In the event that funds in the account fall below margin requirements, brokerage firms will automatically close all open positions.
A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the client. If the equity balance in your account falls below the margin requirement, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions are liquidated immediately, regardless of the size or the nature of positions held within the account.
A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.
Exposure to changes in market prices.
Process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements.
The date for settlement or expiry of a financial instrument.
Market Maker also Money Management
MetaTrader Version 4.00 (trading platform)
Multiple Time Frame
National Association of Securities Dealers Automated Quotation
Occurs when there is light trading and greater fluctuations in prices relative to volume. This is often interchanged for THIN MARKET.
National Futures Association (regulatory)
Non-Farm Payroll (economic indicator)
New York Stock Exchange
New Zealand Dollar (ISO code)
One-Cancels-the-Other (order type)
The rate at which a dealer is willing to sell a currency.
A trade with which serves to cancel or offset some or all of the market risk of an open position.
Open, High, Low, Close (chart)
A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
An order that will be executed when a market moves to its designated price. Normally associated with Good ‘til Cancelled Orders.
A deal not yet reversed or settled with a physical payment.
Used to describe any transaction that is not conducted over an exchange.
A trade that remains open until the next business day.
Point and Figure (chart)
Pin Bar abbreviation of Pinocchio Bar (chart)
Price Interest Point, also Performance Index Paper. Measures the amount of change in the exchange rate for a currency pair. The cost of the base currency is measured by the quoted currency with certain accuracy. This accuracy or the minimum increment value of the currency price change is called a pip.
Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Exposure to changes in governmental policy which will have an adverse effect on an investor’s position.
The Point & Figure Chart disregards Time and focuses entirely on price activity.
The netted total holdings of a given currency.
Producer Price Index (economic indicator)
Price Pivot Zone
Parabolic Stop and Reversal (technical indicator)
In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Describes quotes to which every market participant has equal access.
An indicative market price, normally used for information purposes only.
The price of one currency in terms of another, typically used for dealing purposes.
A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
The revaluation rates are the market rates used when a trader runs an end-of-day to establish profit and loss for the day.
Exposure to uncertain change, the variability of returns significantly the likelihood of less- than-expected returns.
The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle.
To hedge one’s risk they will employ financial analysis and trading techniques
Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
The daily rollover interest rate is the amount a trader either pays or earns, depending on the established margin and position in the market. To avoid rollovers simply make sure positions are closed at the established end of the market day.
Relative Strength Index (technical indicator)
Relative Vigor Index (technical indicator)
Stop and Reversal
Securities and Exchange Commission (regulatory)
The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
An investment position that benefits from a decline in market price. When one sells a currency, their position is short.
Stop Loss (order)
Simple Moving Average (technical indicator)
Smoothed Moving Average (technical indicator)
A currency deposit transaction or the simultaneous purchase and sale of currency, or vice versa by means of swap for spot value day against the next working day.
The current market price. Settlement of spot transactions usually occurs within two business days.
In FX Markets, Spot refers to the cash price without interest factored in.
When you trade foreign exchange you are always quoted a spot price 2 business days in advance. This is under normal conditions where there are no bank holidays in the traded currencies countries or is not over a weekend.
The difference between the bid (buy) and offer (ask, sell) prices; in other words the spread is the commission that the brokerage house makes on each trade. This can vary widely between currencies and between brokerage firms. For example, USD/JPY may bid at 131.40 and ask at 131.45, this five-pip spread defines the trader’s cost, which can be recovered with a favorable currency move in the market.
Standard & Poor’s
Slang for British Pound.
Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor’s position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below
This technical analysis indicator is based on the premise that during an upward trading market, prices tend to close near their high, and during a downward trading market, prices tend to close near their low.
Stochastic Oscillator (technical indicator)
Straight Through Processing
A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross below. Recurring failure for the price to move below that point produces a pattern that can usually be shaped by a straight line. It is the opposite of Resistance levels.
A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Society of Worldwide Interbank Financial Telecommunications. It is a dedicated computer network that is set up to support fund transfer messages between member banks worldwide.
An effort to forecast prices by analyzing market action through chart study, volume, trends, moving averages, patterns, formations and many other technical indicators.
Minimum price move.
Shows current and/or recent history of a currency either in the format of a graph or table.
Simultaneous buying and selling of a currency for delivery the following day.
Take Profit (order)
Buying or selling of goods and services among countries called commerce. Forex Trading is the trading of Foreign Currencies.
The cost of buying or selling a financial instrument.
The date on which a trade occurs.
Simply the direction of the market, usually broken down to three categories… major, intermediate and short-term trends. Three directions are also associated
This is a Technical Analysis indicator also called or linear regression, which is a statistical tool used to uncover trends. It is calculated by using the “Least Squares” method. There are two ways to use the linear regression line: a. Trade in the direction of the Trend line. b. Construct a parallel trend channel above and below the Trend line to be used as support and resistance levels.
Trailing Stop (order)
True Strength Index (technical indicator)
The total money value of all executed transactions in a given time period; volume.
When both a bid and offer rate is quoted for a FX transaction.
A new price quote at a price higher than the preceding quote.
In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
The interest rate at which US banks will lend to their prime corporate customers
United States Dollar (ISO code)
United States Dollar Index (ISO code)
Universal Time, Coordinated
The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavourable price movements.
Degree to which the price of currency tends to fluctuate within a certain period of time. The standard deviation of a price series is commonly used to measure price volatility.
Represents the total amount of trading activity in a particular stock, commodity or index for that day. It is the total number of contracts traded during the day.
Dollar is said to be weak (relative to a previous time period) against another currency when more dollars are required to buy one unit of another currency. The dollar is strong or has gained in strength when fewer dollars are required to buy one unit of another currency. For example, if $1 buys 10 FF in 1989 but today $1 buys only 6 FF then the dollar has weakened against the franc.
Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Slang for a billion.
Return on capital investment.