Risk/Reward Ratio Calculator

What is a Risk/Reward Ratio?

The risk/reward ratio compares the potential loss (risk) to the potential gain (reward) in a trade. A lower ratio is generally better.

How to use the Risk/Reward Calculator?

• Enter your entry, stop loss, target, and position size.
• Click Calculate to see the risk, reward, and risk/reward ratio.

Frequently Asked Questions

What is a good risk/reward ratio?

Many traders look for a ratio of 1:2 or better (risking 1 to make 2).

Why is risk/reward important?

It helps you manage risk and improve your trading edge over time.

---