#RiskRewardRatio

Smart trading starts with smart risk management.

One of the most important concepts every trader should master is the Risk-Reward Ratio — it’s your compass in the world of trading.

What is Risk-Reward Ratio?

It’s a way to compare how much you're willing to risk vs how much you expect to gain.

For example:

If you're risking $100 to potentially make $300, your risk-reward ratio is 1:3 — meaning for every $1 at risk, you stand to gain $3.

Why it matters:

• Helps you filter high-quality trade setups

• Keeps your losses smaller than your wins

• Builds long-term profitability even with a 50% win rate

Pro Tips:

1. Never take trades where the potential loss is greater than the potential reward.

2. Aiming for at least a 1:2 or 1:3 ratio keeps your edge strong.

3. Combine RRR with solid technical analysis for better entries and exits.

Your edge is not just in strategy, but in discipline. Master your risk, and the rewards will follow.

What’s your ideal RRR when trading on Binance? Drop your thoughts below!

#RiskRewardRatio