The #RiskReward ratio is a key concept in trading and investing that helps evaluate the potential profit of a trade relative to its possible loss. It is calculated by dividing the amount a trader stands to gain by the amount they risk losing. For example, a risk-reward ratio of 1:3 means risking $1 to potentially earn $3. A favorable ratio helps traders make smarter decisions and manage risk more effectively. It's commonly used in forex, stocks, and crypto trading. Understanding this ratio is essential for long-term success and protecting capital in volatile markets.

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