#RiskRewardRatio

The risk-reward ratio is a way to compare how much risk you take to how much reward you might get. It is used a lot in trading and investing. For example, if you risk $10 to make $30, your risk-reward ratio is 1:3. This means you could lose 1 part but gain 3 parts. A good ratio helps you make smart choices. It doesn’t mean you will always win, but it helps you manage your losses. Always check the ratio before investing or trading. A better ratio means better chances to grow your money with less risk.