Why are trades measured in dollar amounts instead of % amounts?

[bangzilla]

Hey everyone, bit of a noob here

I was wondering why profits of losses for trades are discribed in dollars and cents as opposed to percentages.

If i made $1.50 off a $10 stock, it would be more of a gain than $1.50 off a $500 since i would be able to purchase more shares of the $10 stock woudlnt it?

So wouldnt it make more sense to refer to it as a 15% profit? or is there something that dollar amounts tells you that i dont know about?

thanks in advance

 

[foredog]

You can't spend %

 

[Rhody Trader]

I was wondering why profits of losses for trades are discribed in dollars and cents as opposed to percentages.

Actually, traders speaking of P&L in terms of cash, points, and/or %. Just depends on what you're trying to communicate.