A round trip refers to the repeated process of buying and selling securities to alter the trading volume and liquidity within a single trading session on the market. It could also refer to opening and closing positions within a single day, often multiple entries per day and can stand against the ideal technical analysis.

This kind of trading is sometimes used to inflate market capitalisation or evade taxes. When closely looking at the stock market, a round trip can be said to be. This entails following your conviction about the market. If the market moves in your direction, you immediately sell what you bought and proceed to the next round as soon as you realise a profit from the previous trade, reentering the market throughout the day.

Essentially, a round trip is a complete action of opening and closing a trade or selling short, then buying back.

What is the cost?

A round-trip costs refer to all the charges incurred in a securities or other financial transaction. Its costs ranges between exchanges fees, market impact costs, commissions, bid/ask spreads as well as taxes that follow. Given that these transaction costs can diminish a significant share of trading profits, traders and investors work to minimize them as much as they can.