TRADING GLOSSARY
Expectancy
Expectancy is the average profit or loss expected per trade under a specified set of assumptions. It combines each outcome's probability with its average payoff; estimates based on past trades do not guarantee future results, and trading costs affect the calculation.
EXAMPLE
In a hypothetical model, 40% of trades gain $150 and 60% lose $80, with costs included. Expectancy is 0.4 × $150 − 0.6 × $80 = $12 per trade.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure