#RiskRewardRatio #RiskRewardRatio In a volatile trading world, the risk/reward ratio is a vital tool for assessing the viability of trades. This ratio is calculated by dividing the amount of potential loss (risk) by the amount of expected profit (reward). For example, if the stop loss is set at 50 dollars and the profit target at 150 dollars, the risk/reward ratio is 1:3.
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