#RiskRewardRatio Title: Why the Risk/Reward Ratio Should Be Your Best Friend in Trading

Successful trading isn’t just about finding winning trades — it’s about managing your risk vs reward.

What is the Risk/Reward Ratio?

It’s a metric that compares how much you’re willing to risk vs how much you expect to gain. For example, if you risk $100 to make $300, your risk/reward ratio is 1:3.

Why it matters:

• Better decision-making: Focus on high-reward, low-risk setups.

• Long-term profitability: Even with a 40% win rate, a good risk/reward ratio can keep you in profit.

• Discipline booster: Forces you to define your exit points — both for profit and loss.

Example strategy:

Set your stop-loss at 5% and take-profit at 15%. That’s a 1:3 ratio — you only need to win 3 out of 10 trades to stay profitable.

How to apply this on Binance:

Use the Stop-Limit and Take-Profit tools in both Spot and Futures trading to automate your trades based on your ratio strategy.

Pro tip: Never enter a trade without knowing your potential loss and gain. This is the foundation of risk management in crypto.

Trade smart. Trade with a plan.