#RiskRewardRatio is a key concept in investing and trading, helping traders assess the potential returns of a trade relative to the risks involved. It compares the amount of risk taken on a trade with the potential reward or profit. For example, if you risk 100 for a potential profit of300, the risk-reward ratio is 1:3. A favorable risk-reward ratio helps traders manage their capital efficiently and make informed decisions. Traders often aim for a higher reward than the risk taken, ensuring they maintain profitability over time. Understanding this ratio is crucial for successful long-term trading strategies