#RiskRewardRatio To set a risk-reward ratio on Binance, follow these steps¹ ²:

- *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.

*Calculating Risk-Reward Ratio*:

Risk = Entry Price - Stop Loss (for long)

Reward = Take Profit - Entry Price (for long)

Risk to Reward Ratio = Risk / Reward

*Example*:

Entry: $150

Stop Loss: $140

Take Profit: $180

Risk = $150 - $140 = $10

Reward = $180 - $150 = $30

R:R = $10 / $30 = 1:3

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

*Common Ratios*:

- *1:2*: Moderate, suitable for most strategies

- *1:3 or higher*: Preferred for conservative traders or volatile markets

- *1:1 or lower*: Risky, often avoided unless win rate is exceptionally high

You can visually drag your stop loss and take profit levels when using the "Stop Limit" or "OCO (One Cancels the Other)" order type on Binance to manage your risk-reward ratio.