#RiskRewardRatio

Trading and investing to assess the potential profit of a trade or investment compared to the potential loss. This ratio helps investors and traders evaluate the worthiness of potential returns against the level of risk they are taking on.

Here is an explanation:

What it is:

The risk/reward ratio compares the potential profit (reward) of a trade or investment to the potential loss (risk). It is a way to determine how much profit you aim to achieve relative to the amount you are willing to lose.