**#RiskRewardRatio | Risk to Reward Ratio**

The risk to reward ratio is a fundamental tool for evaluating investment opportunities. It helps traders determine how much risk they are taking compared to the expected reward.

**Basic Formula**: The lower the ratio, the more attractive the opportunity.

### Example:

- If the risk to reward ratio is 1:3, it means you are willing to risk one unit to achieve three units of profit.

**Tip**: Always make sure to determine the risk to reward ratio before entering any trade to ensure safer trading.