#RiskRewardRatio
The **#RiskRewardRatio** is one of the keys to making smart decisions when investing, especially if you are just starting out. This ratio helps you evaluate how much you are willing to risk against how much you could gain in a trade. For example, if you risk $10 to gain $30, your ratio is 1:3.
On platforms like Binance, you can calculate this ratio before entering the market and determine if it's worth opening a trade. Using the **#RiskRewardRatio** allows you to maintain discipline, protect your capital, and focus on trades with good potential.
Remember: it's not about winning all the time, but about having strategies where the gains consistently exceed the losses.