The risk-reward ratio of #风险回报比 , simply put, is how much risk you are willing to take for how much reward in a trade. For example, if you buy ETH and plan to lose $10 (risk) but hope to make $30 (reward), that is a 1:3 risk-reward ratio.

In simple terms, it helps you weigh 'is it worth it': the lower the risk and the higher the reward, the more worthwhile the trade. When trading contracts, setting stop-loss and take-profit levels allows you to control this ratio and avoid reckless gambling. Do you understand?

How do you use it?

Current price is around $1,600, with a stop-loss set at $1,450 (risk 9%) and a take-profit at $2,200 (reward 37%), giving an R:R of about 1:4.