#RiskRewardRatio $BTC

The risk-reward ratio is a fundamental concept in investing and trading, measuring the potential profit of an investment against the potential loss. It's expressed as a ratio, typically written as X:Y, where X represents the potential risk (loss) and Y represents the potential reward (profit). For example, a 1:3 risk-reward ratio means that for every unit risked, there's a potential reward of three units.