#RiskRewardRatio

In crypto trading, managing risk is just as important as spotting opportunities. That’s where the Risk-Reward Ratio (RRR) comes in — a simple but powerful tool every trader should use.

What is it?

The Risk-Reward Ratio measures how much you’re willing to risk in comparison to how much you expect to gain.

Formula:

Risk-Reward Ratio = Potential Loss / Potential Gain

Example:

If you enter a trade risking $100 to potentially gain $300, your RRR is 1:3. That means for every $1 you risk, you could make $3.

Why it matters:

• Helps you plan smarter trades

• Keeps emotions in check

• Encourages discipline and consistency

• Protects your capital over the long run

Pro tip: Many successful traders aim for a minimum 1:2 or 1:3 ratio — meaning the reward is at least 2–3x the risk.

Bottom line:

Even the best setups can fail. But with the right RRR, you only need to win a fraction of your trades to stay profitable.

Trade smart. Manage risk. Maximize reward.

Only on Binance.