#RiskRewardRatio The risk ratio in trading and investing usually refers to the risk-to-reward ratio (RRR) — a way to measure how much risk you’re taking for a potential profit.

Risk-to-Reward Ratio Formula:

Risk-to-Reward Ratio=Potential LossPotential Gain\text{Risk-to-Reward Ratio} = \frac{\text{Potential Loss}}{\text{Potential Gain}}Risk-to-Reward Ratio=Potential GainPotential Loss​