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Trading

Risk/Reward (R:R)

The ratio of potential profit to risk. At 1:2 R:R the reward is twice the risk. The break-even win rate = 1 / (1 + R:R).

Example

Entry 100, stop 98, target 106: risk 2, reward 6, R:R = 1:3.

Related terms

Stop-lossTake profitPosition size

Where to trade

Crypto

WEEXWEEX

A crypto exchange for trading.

Sign up on WEEX ↗

Forex

FxProFxPro

Broker: forex and CFDs.

Sign up with FxPro ↗
VantageVantage

Broker: forex and CFDs.

Sign up with Vantage ↗

Referral link: ARUT may receive a reward. Trading with leverage carries a high risk of losing funds; this is not investment advice. CFDs are complex instruments: because of leverage there is a high risk of losing money quickly.