#RiskRewardRatio What is the Risk/Reward Ratio?

Calculating the Risk/Reward Ratio

Identify Entry and Exit Points:

Entry Point: Take-Profit Level: Stop-Loss Level:

Determine Potential Risk and Reward:

Potential Risk: Potential Reward:

Calculate the Ratio:

Example:

Entry Point:

Take-Profit Level:

Stop-Loss Level:

Potential Risk:

Potential Reward:

Risk/Reward Ratio:

Using the Risk/Reward Ratio in Trading:

Assess Trade Viability: Align with Trading Strategy: Consider Win Rate:

*Disclaimer: This information is for educational purposes only and does not constitute financial advice.*