The risk-reward ratio of #风险回报比 is a core risk management tool for cryptocurrency investment. Its essence is to quantify the ratio of potential returns to risks, helping investors establish a rational decision-making framework in a highly volatile market. The calculation formula is (target price - entry price) / (entry price - stop-loss price). For example, buying BTC at $83,000, with a stop-loss at $75,000 and a target of $90,000, results in a risk-reward ratio of 0.875:1, indicating that the risk exceeds the reward, requiring cautious entry.
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