#RiskRewardRatio What is Risk-Reward Ratio?
Formula:
Risk-Reward Ratio
=
Potential Loss
Potential Profit
Risk-Reward Ratio=
Potential Profit
Potential Loss
Example:
Buy Price: $100
Stop Loss: $95 (Risk = $5)
Target Price: $115 (Reward = $15)
RRR = 5 / 15 = 1:3