#TradingTypes101 In the context of trading, "1,1" most commonly refers to a 1:1 risk-reward ratio. This means a trader is risking the same amount of capital as they are aiming to gain for a single trade. For example, a stop loss of 50 pips would be paired with a profit target of 50 pips.

Here's a more detailed breakdown:

Risk-Reward Ratio:

A 1:1 risk-reward ratio implies an equal risk and potential reward for a trade.

It's a strategy where traders aim to make a profit equal to the amount they are risking on a trade.

To be profitable with a 1:1 ratio, a trader needs to win more than 50% of their trades.

Example:

If you risk $250 on a trade and your stop loss is triggered, you'd lose that amount.

To make a profit equivalent to your risk, you'd need to set a profit target that, if hit, would result in a $250 profit.

Other contexts where "1,1" might be used in trading:

Leverage: A 1:1 leverage means the trader is using only their own funds to trade, with no borrowed capital.

Bonus Shares: A 1:1 bonus share issue means investors receive one new share for every share they already own.

Trading Platforms: "Trading 212" is a popular trading platform.