Definition of Yield
The income return on an investment, typically expressed as an annual percentage. In forex, yield differentials between two countries drive currency flows and are a key factor in carry trades.
At a glance
| Term | Yield |
|---|---|
| URL slug | yield |
| Category | General |
| Short answer | The income return on an investment, typically expressed as an annual percentage. |
| Deep dives | Full A–Z glossary |
Example
Apply the definition: restate “Yield” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Yield” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Yield” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools: Lot Size Calculator · Pip Value Calculator · Broker Quiz
Related terms
- Balance The total amount of money in your trading account, excluding unrealized profits or losses from open positions.
- Bar Chart A type of price chart where each period is represented by a vertical bar showing the open, high, low, and close prices for that period.
- Bear Market A market condition characterized by falling prices and pessimistic sentiment.
- Breakout A price movement through a defined level of support or resistance, usually accompanied by increased volume and volatility.
- Broker A financial intermediary that provides traders with access to the forex market.
- Bull Market A market condition characterized by rising prices and optimistic sentiment.
FAQ
The income return on an investment, typically expressed as an annual percentage.
Knowing the precise definition of “Yield” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Yield” as loose slang while your broker/platform specification defines it more narrowly.