# Money Weighted Return ⎊ Definition

**Published:** 2026-03-16
**Author:** Greeks.live
**Categories:** Definition

---

## Money Weighted Return

The money weighted return is a measure of the internal rate of return of a portfolio that accounts for the timing and size of cash flows. Unlike time weighted return, this metric is sensitive to when capital is added or withdrawn, making it a better reflection of the actual investor experience.

If an investor adds a large amount of capital right before a market rally, their money weighted return will be higher than the time weighted return. This is useful for individual investors who control their own capital allocation decisions.

In the context of crypto, it highlights the importance of market timing for the individual user. It effectively measures the combined result of both investment strategy and capital timing.

- [DeFi Money Market Equilibrium](https://term.greeks.live/definition/defi-money-market-equilibrium/)

- [Financial Action Task Force](https://term.greeks.live/definition/financial-action-task-force/)

- [Monetary Base](https://term.greeks.live/definition/monetary-base/)

- [Geometric Mean Return](https://term.greeks.live/definition/geometric-mean-return/)

- [At-the-Money Volatility](https://term.greeks.live/definition/at-the-money-volatility/)

- [Smart Contract Risk Premium](https://term.greeks.live/definition/smart-contract-risk-premium/)

- [Time-Weighted Average Price Manipulation](https://term.greeks.live/definition/time-weighted-average-price-manipulation/)

- [Central Bank Policy](https://term.greeks.live/definition/central-bank-policy/)

## Discover More

### [Financial Market Microstructure](https://term.greeks.live/term/financial-market-microstructure/)
![A detailed view of intertwined, smooth abstract forms in green, blue, and white represents the intricate architecture of decentralized finance protocols. This visualization highlights the high degree of composability where different assets and smart contracts interlock to form liquidity pools and synthetic assets. The complexity mirrors the challenges in risk modeling and collateral management within a dynamic market microstructure. This configuration visually suggests the potential for systemic risk and cascading failures due to tight interdependencies among derivatives.](https://term.greeks.live/wp-content/uploads/2025/12/intertwined-financial-derivatives-and-decentralized-liquidity-pools-representing-market-microstructure-complexity.webp)

Meaning ⎊ Financial Market Microstructure governs the mechanical architecture and incentive design that facilitate efficient price discovery in decentralized markets.

### [Zero Line Crossover](https://term.greeks.live/definition/zero-line-crossover/)
![A visualization of complex financial derivatives and structured products. The multiple layers—including vibrant green and crisp white lines within the deeper blue structure—represent interconnected asset bundles and collateralization streams within an automated market maker AMM liquidity pool. This abstract arrangement symbolizes risk layering, volatility indexing, and the intricate architecture of decentralized finance DeFi protocols where yield optimization strategies create synthetic assets from underlying collateral. The flow illustrates algorithmic strategies in perpetual futures trading.](https://term.greeks.live/wp-content/uploads/2025/12/layered-collateralization-structures-for-options-trading-and-defi-automated-market-maker-liquidity.webp)

Meaning ⎊ The point where an indicator crosses the zero level, signaling a fundamental shift in the underlying trend direction.

### [Loan to Value Ratio](https://term.greeks.live/definition/loan-to-value-ratio-2/)
![A stylized visual representation of a complex financial instrument or algorithmic trading strategy. This intricate structure metaphorically depicts a smart contract architecture for a structured financial derivative, potentially managing a liquidity pool or collateralized loan. The teal and bright green elements symbolize real-time data streams and yield generation in a high-frequency trading environment. The design reflects the precision and complexity required for executing advanced options strategies, like delta hedging, relying on oracle data feeds and implied volatility analysis. This visualizes a high-level decentralized finance protocol.](https://term.greeks.live/wp-content/uploads/2025/12/algorithmic-trading-protocol-interface-for-complex-structured-financial-derivatives-execution-and-yield-generation.webp)

Meaning ⎊ The percentage relationship between debt size and collateral value used to assess leverage risk and borrowing capacity.

### [Portfolio Construction Strategies](https://term.greeks.live/term/portfolio-construction-strategies/)
![This abstract composition illustrates the intricate architecture of structured financial derivatives. A precise, sharp cone symbolizes the targeted payoff profile and alpha generation derived from a high-frequency trading execution strategy. The green component represents an underlying volatility surface or specific collateral, while the surrounding blue ring signifies risk tranching and the protective layers of a structured product. The design emphasizes asymmetric returns and the complex assembly of disparate financial instruments, vital for mitigating risk in dynamic markets and exploiting arbitrage opportunities.](https://term.greeks.live/wp-content/uploads/2025/12/decentralized-finance-structured-products-risk-layering-and-asymmetric-alpha-generation-in-volatility-derivatives.webp)

Meaning ⎊ Portfolio construction strategies define the systematic management of risk and yield through the precise engineering of crypto derivative exposures.

### [Money Market Equilibrium](https://term.greeks.live/definition/money-market-equilibrium/)
![A stylized mechanical linkage system, highlighted by bright green accents, illustrates complex market dynamics within a decentralized finance ecosystem. The design symbolizes the automated risk management processes inherent in smart contracts and options trading strategies. It visualizes the interoperability required for efficient liquidity provision and dynamic collateralization within synthetic assets and perpetual swaps. This represents a robust settlement mechanism for financial derivatives.](https://term.greeks.live/wp-content/uploads/2025/12/interoperable-smart-contract-linkage-system-for-automated-liquidity-provision-and-hedging-mechanisms.webp)

Meaning ⎊ State where lending supply and borrowing demand balance at a stable interest rate.

### [Entity Extraction](https://term.greeks.live/definition/entity-extraction/)
![A detailed cross-section of a complex asset structure represents the internal mechanics of a decentralized finance derivative. The layers illustrate the collateralization process and intrinsic value components of a structured product, while the surrounding granular matter signifies market fragmentation. The glowing core emphasizes the underlying protocol mechanism and specific tokenomics. This visual metaphor highlights the importance of rigorous risk assessment for smart contracts and collateralized debt positions, revealing hidden leverage and potential liquidation risks in decentralized exchanges.](https://term.greeks.live/wp-content/uploads/2025/12/dissection-of-structured-derivatives-collateral-risk-assessment-and-intrinsic-value-extraction-in-defi-protocols.webp)

Meaning ⎊ Isolating specific asset names from text for precise analysis.

### [Network Data Metrics](https://term.greeks.live/term/network-data-metrics/)
![A conceptual visualization of a decentralized financial instrument's complex network topology. The intricate lattice structure represents interconnected derivative contracts within a Decentralized Autonomous Organization. A central core glows green, symbolizing a smart contract execution engine or a liquidity pool generating yield. The dual-color scheme illustrates distinct risk stratification layers. This complex structure represents a structured product where systemic risk exposure and collateralization ratio are dynamically managed through algorithmic trading protocols within the DeFi ecosystem.](https://term.greeks.live/wp-content/uploads/2025/12/collateralized-derivative-structure-and-decentralized-network-interoperability-with-systemic-risk-stratification.webp)

Meaning ⎊ Network Data Metrics quantify the fundamental state and economic activity of blockchains to inform risk management in decentralized financial markets.

### [AMM Pricing Curves](https://term.greeks.live/definition/amm-pricing-curves/)
![A futuristic, abstract mechanism featuring sleek, dark blue fluid architecture and a central green wheel-like component with a neon glow. The design symbolizes a high-precision decentralized finance protocol, where the blue structure represents the smart contract framework. The green element signifies real-time algorithmic execution of perpetual swaps, demonstrating active liquidity provision within a market-neutral strategy. The inner beige component represents collateral management, ensuring margin requirements are met and mitigating systemic risk within the dynamic derivatives market infrastructure.](https://term.greeks.live/wp-content/uploads/2025/12/algorithmic-execution-engine-for-decentralized-perpetual-swaps-with-automated-liquidity-and-collateral-management.webp)

Meaning ⎊ Mathematical formulas that define asset prices in decentralized liquidity pools based on reserve ratios.

### [Risk Factor Sensitivity](https://term.greeks.live/definition/risk-factor-sensitivity/)
![A high-resolution abstraction where a bright green, dynamic form flows across a static, cream-colored frame against a dark backdrop. This visual metaphor represents the real-time velocity of liquidity provision in automated market makers. The fluid green element symbolizes positive P&L and momentum flow, contrasting with the structural framework representing risk parameters and collateralized debt positions. The dark background illustrates the complex opacity of derivative settlement mechanisms and volatility skew in high-frequency trading environments.](https://term.greeks.live/wp-content/uploads/2025/12/algorithmic-execution-and-liquidity-dynamics-in-perpetual-swap-collateralized-debt-positions.webp)

Meaning ⎊ A measure of how much a portfolio's value fluctuates due to changes in specific variables like price or volatility.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://term.greeks.live/"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Definition",
            "item": "https://term.greeks.live/definition/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "Money Weighted Return",
            "item": "https://term.greeks.live/definition/money-weighted-return/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://term.greeks.live/definition/money-weighted-return/"
    },
    "headline": "Money Weighted Return ⎊ Definition",
    "description": "Meaning ⎊ Internal rate of return that accounts for the impact of investor cash flow timing. ⎊ Definition",
    "url": "https://term.greeks.live/definition/money-weighted-return/",
    "author": {
        "@type": "Person",
        "name": "Greeks.live",
        "url": "https://term.greeks.live/author/greeks-live/"
    },
    "datePublished": "2026-03-16T05:57:31+00:00",
    "dateModified": "2026-03-16T05:58:05+00:00",
    "publisher": {
        "@type": "Organization",
        "name": "Greeks.live"
    },
    "articleSection": [
        "Definition"
    ],
    "image": {
        "@type": "ImageObject",
        "url": "https://term.greeks.live/wp-content/uploads/2025/12/algorithmic-interoperability-and-dynamic-risk-management-in-decentralized-finance-derivatives-protocols.jpg",
        "caption": "A macro view details a sophisticated mechanical linkage, featuring dark-toned components and a glowing green element. The intricate design symbolizes the core architecture of decentralized finance DeFi protocols, specifically focusing on options trading and financial derivatives."
    }
}
```


---

**Original URL:** https://term.greeks.live/definition/money-weighted-return/