The hashtag #RiskRewardRatio refers to a key concept in trading that helps you measure how much potential profit you can make compared to how much you're willing to risk on a trade. It’s used to evaluate whether a trade is worth taking.
For example, if you risk $100 to potentially earn $300, your risk-reward ratio is 1:3. This means for every dollar you risk, you aim to make three. A good risk-reward ratio depends on your strategy, but many traders look for ratios of 1:2 or higher.
Using the risk-reward ratio helps traders:
Plan smarter trades
Set realistic targets and stop-loss levels
Stay disciplined and avoid emotional decisions
The hashtag #RiskRewardRatio is popular among traders sharing strategies, charts, and trade setups. It’s a reminder to never risk more than you can afford to lose and to always look for trades where the reward outweighs the risk.