#RiskRewardRatio The risk-reward ratio is a fundamental concept in trading and investing, helping you evaluate the potential return on investment relative to the risk taken.

*Key Aspects*

1. *Risk*: The potential loss or downside of an investment.

2. *Reward*: The potential gain or upside of an investment.

3. *Ratio*: The comparison of risk to reward, often expressed as a numerical ratio (e.g., 1:2 or 1:3).