Investing term
What is Round-trip?
The full cost of buying and then selling a position — commission + spread + FX, both sides.
A round-trip is the full cost of buying and later selling a position — commissions, the bid-ask spread, and any currency fees, counted on both the way in and the way out. It's the real, all-in cost of a trade, not just the visible commission on one side.
Adding it up matters because the costs stack and repeat. You cross the spread buying and again selling; you may pay a currency markup both times; and any commission applies on each leg. That total is a guaranteed cost you pay regardless of whether the trade made money — which is precisely why frequent trading quietly erodes returns. Thinking in round-trip terms reveals why churning a portfolio, especially in thinly traded or foreign securities, is far more expensive than the headline fees suggest.
A round trip stacks the spread, commission, and FX markup paid buying and again selling — the real hurdle every trade must clear to profit. It's why frequent trading quietly erodes returns.
For example
Buying and selling a foreign stock costs a spread, a commission, and an FX conversion on each side — a round-trip that eats several percent before the trade even needs to make money.
Learn it by doing
That's Round-trip in theory — it clicks when you use it. Practise it hands-on in a free, interactive lesson (Stage 9, Fees, Scams & Protecting Your Money).
Try the free lesson →Why it matters to you
The round-trip concept matters because it exposes the true cost of trading, which single-side fees understate. Every trade must overcome its full round-trip cost just to break even, so frequent trading faces a steady headwind that compounds against returns. Framing costs as round-trips — and favouring fewer, larger trades in liquid securities — is a practical way to stop trading activity from quietly draining a portfolio.
⚠ Counting only one side of the cost
Investors often notice the commission or spread on the way in and forget they'll pay again on the way out — plus any FX markup on both legs. Judging a trade by one-side costs understates the real hurdle it must clear to profit. Always reckon the full round-trip cost, especially for thinly traded or foreign securities where spreads and FX add up.