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:
Related terms
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.