Calculate the risk-to-reward ratio of your trade based on entry price, stop-loss, and target price.
The risk-reward ratio shows how much profit you expect to make compared to how much you are willing to lose on a trade. For example, if you risk $100 to make $300, your risk-reward ratio is 1:3.
You don’t need to win every trade to be profitable. If your average reward is larger than your average risk, you can stay profitable even with a lower win rate.
1. Enter your trade entry price
2. Enter your stop-loss price
3. Enter your take-profit price
4. Select Long or Short
5. Click “Calculate Risk-Reward Ratio”
Most professional traders aim for:
• Minimum: 1:2
• Preferred: 1:3 or higher
With a 1:2 risk-reward ratio, you only need to win around 40% of your trades to be profitable in the long run.
Most traders aim for at least a 1:2 ratio. This means for every $1 you risk, you aim to make $2. A higher ratio like 1:3 provides even better long-term profitability.
You can, but it is dangerous. A low reward compared to risk means you must win a very high percentage of trades to stay profitable.
No. Leverage increases both potential profit and loss equally, but it does not change the ratio itself. It only affects the speed of profit or loss.
Yes. Even traders with 40–50% win rates can stay profitable if their risk-reward is strong.
Yes. Professional traders always define risk, reward, and stop-loss before entering any trade.