Sign up ×
Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. It's 100% free, no registration required.

log long return is log((exitprice-fees)/entryprice) without leverage.

log short return is the negative long return.

So, from the above I would get

short return = log(entryprice/(exitprice-fees)). Which doesn't make sence.

So, should it be log(entryprice/(exitprice+fees)) or log((entryprice-fees)/exitprice) ?

share|improve this question

1 Answer 1

up vote 1 down vote accepted

If you are short you need to use log((entryprice-fees)/exitprice). It is the same logic as in log long return case. You just need to change your entryprice and exitprice inputs. In this case, entryprice is the selling operation and exitprice will be the buying operation (just the opposite).

share|improve this answer

Your Answer


By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.