#RiskRewardRatio

(RRR or R:R)

Risk to Reward Ratio=Potential LossPotential ProfitRisk to Reward Ratio=Potential ProfitPotential Loss

Exampl

Entry price: $100

Stop loss: $90 (risk of $10)

Take profit: $130 (reward of $30)

RRR=1030=1:3RRR=3010=1:3

This means you're risking $1 to potentially make $3.

Key Points:

A 1:2 or 1:3 ratio is commonly preferred.

Even with a 50% win rate, a 1:2 RRR keeps you profitable.

Helps with risk management and emotional discipline.

Tips on how to set R:R in Binance trades?

you can set and calculate Risk to Reward Ratio (R:R) on Binance trades, plus a simple calculator formula you can use:

How to Set Risk to Reward in Binance:

Determine Entry Point:

Decide the price you plan to enter the trade.

Set Stop Loss (Risk):

Choose a price below (for long) or above (for short) your entry where you'll exit if the trade goes against you.

Set Take Profit (Reward):

Choose a price above (for long) or below (for short) your entry where you’ll exit if the trade goes in your favor.

R:R Calculator Formula:

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Risk = Entry Price - Stop Loss (for long) Reward = Take Profit - Entry Price (for long) Risk to Reward Ratio = Risk / Reward

Example (Long Position):

Entry: $150

Stop Loss: $140

Take Profit: $180

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Risk = 150 - 140 = $10 Reward = 180 - 150 = $30 R:R = 10 / 30 = 1:3

Helpful Tip:

On Binance, you can visually drag your stop loss and take profit levels when using the "Stop Limit" or "OCO (One Cancels the Other)" order type — very handy