What does "key performance indicators (KPIs)" refer to in commodity trading?

Key performance indicators (KPIs) in commodity trading are essential metrics that help traders and organizations evaluate the effectiveness of their trading strategies. They provide quantifiable measures that can gauge success and facilitate improvements in performance.

For instance, KPIs may include metrics like return on investment (ROI), profit margin, trading volume, or win/loss ratio. By analyzing these indicators, traders can better understand which strategies yield the highest returns, optimize their operations, and make informed decisions about future investments. The focus of KPIs is specifically on performance evaluation, ensuring that traders can track their progress and refine their approaches based on empirical data.

Other answer choices address different aspects of trading but do not directly relate to evaluating trading strategies, which is why they do not fit the definition of KPIs in this context.