#风险回报比 The risk-reward ratio is an important indicator used in financial trading to measure the relationship between risk and return. It helps investors assess the potential return for each unit of risk taken, and is a key tool in the decision-making process.
Definition and Calculation of Risk-Reward Ratio
Definition: The risk-reward ratio (R/R ratio) represents the ratio between the risk taken by the investor and the potential return that can be achieved. It is commonly used to assess the reasonableness of a trade.
Calculation Formula: The risk-reward ratio can be calculated using the following formula:
Risk-Reward Ratio
=
Potential Return
Potential Risk
Risk-Reward Ratio=
Potential Risk
Potential Return