#RiskRewardRatio The risk-reward ratio is a fundamental tool for evaluating trade viability, measuring potential profit against possible loss. Traders often use a 1:3 ratio, risking $1 to gain $3, ensuring profitable outcomes even with moderate win rates. Technical indicators like support/resistance levels, moving averages, and ATR help set realistic targets and stop-losses. Binance Square's #RiskRewardRatio discussion highlights its importance in disciplined trading. By quantifying risk before entering trades, investors avoid emotional decisions and improve long-term profitability. Proper risk-reward analysis, combined with position sizing, creates a robust framework for consistent trading success.