#RiskRewardRatio is a key tool in financial risk management. It represents the relationship between the risk taken and the potential profit in a trade. For example, a ratio of 1:3 indicates that for every euro risked, three are expected in profit. This indicator helps traders and investors assess whether a trade is worthwhile. The greater the reward in relation to the risk, the more attractive the investment will be. However, it does not guarantee success; it must be combined with a solid strategy and discipline. Understanding and properly applying the Risk Reward Ratio is vital for trading intelligently.