#RiskRewardRatio

#RiskRewardRatio – XRP Coin

The risk-reward ratio plays a very important role in trading XRP coins. This ratio indicates how much risk you are taking compared to the possible reward. For example, if you buy XRP at 0.50$ and your target is 0.60$ , but you set a stop-loss at 0.45$ , then your risk is 0.05$ and the reward is 0.10$ . In this case, the risk-reward ratio is 1:2, which is considered a healthy ratio. A good trading strategy should always have a favorable risk-reward ratio to cover losses and achieve profit.