What Do 5 Round Turn Trades Mean in Forex?

What Do 5 Round Turn Trades Mean in Forex?

If you’re actively involved in Forex trading, especially with prop firms or ECN brokers, you might have heard the term “5 round turn trades.” It’s a commonly used phrase, but what does it really mean? In this post, we’ll explain this trading term in simple words, and why it matters for your trading success.

✅ What Is a Round Turn Trade?

A round turn trade refers to the full cycle of a Forex transaction — both the opening and closing of a trade. Here’s an example:

• You buy 1 lot of EUR/USD (entry)
• You later sell 1 lot of EUR/USD (exit)

This complete action makes one round turn trade. If you only enter or exit, that's a half-turn or one-way trade.

📊 What Does "5 Round Turn Trades" Mean?

“5 round turn trades” simply means you’ve executed five full trading cycles. That’s five entries and five exits — or a total of 10 transactions.

Here’s a quick breakdown:

• ✅ 5 entries
• ✅ 5 exits
• ✅ 10 tickets

📌 Why Are Round Turn Trades Important?

This term is especially important in the following areas:

1. Prop Firm Challenges

Most prop firms require a minimum number of round turn trades to assess a trader’s consistency. For example, a challenge may state: “You must complete at least 5 round turn trades in 10 days.”

2. Managed Forex Accounts

In MAM or PAMM accounts, fees are often based on round turn trades. The more trades, the more performance or commission fees may apply.

3. Broker Commission Structures

Some brokers charge commissions per round turn, while others charge per side. Knowing this helps you manage your trading costs effectively.

💡 Example: Calculating Costs

Let’s say your broker charges $7 per round turn on a standard lot. If you complete 5 round turn trades:

Total Commission = 5 trades × $7 = $35

If your broker charges $3.5 per side, the math still adds up the same:

Total = 5 trades × 2 sides × $3.5 = $35

This difference matters for scalpers and day traders who open many positions daily.

🧠 Pro Tips for Traders

• 📘 Track round turn trades in a journal or Excel sheet.
• 🧾 Always confirm if your broker charges per side or per round turn.
• 🤖 Automate trade tracking if you're using EAs or bots to meet minimum trade requirements.

📝 Final Thoughts

The term “5 round turn trades” may seem technical, but it plays a key role in Forex trading, especially in prop firm evaluations and cost management. By understanding how many full trades you execute, you can plan your strategy better, stay compliant with account rules, and calculate your expenses accurately.