#RiskRewardRatio

The risk-reward ratio helps you understand if an investment is worth it. It compares how much you could lose (the risk) to how much you could gain (the reward). For example, if you risk $10 to possibly earn $30, the risk-reward ratio is 1:3. A good ratio means you're not risking too much for a small reward. It’s a simple way to make smarter choices and avoid taking big risks for small returns.