#RiskRewardRatio (Risk/Reward Ratio) compares the potential gain of a trade to its possible loss. It is calculated by dividing the potential risk (what you could lose) by the potential reward (what you expect to gain).

A good ratio is usually where the potential gain is greater than the risk (for example, 1:2 or 1:3), which means that for every dollar you risk, you expect to gain two or three dollars.

It is important for making informed decisions, managing risk, setting realistic expectations, and comparing investment opportunities. It helps to assess whether the potential benefit justifies the level of risk taken.