#RiskRewardRatio

The **Risk-Reward Ratio** (RRR) is an essential tool used by traders and investors to assess the relationship between the risk of a trade and the potential reward. It helps to determine whether an investment is viable, considering the amount of risk one is willing to take in relation to the potential profit. The basic calculation is done by dividing the value of the risk by the value of the reward. For example, if the risk of loss in a trade is R$100 and the potential profit is R$300, the RRR would be 1:3.