Risk Reward Ratio Calculator
Calculate and visualize the risk-reward ratio for your trades to ensure favorable odds and profitable trading decisions.
Risk Management
Trade Planning
Calculate Your Risk-Reward Ratio
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Results
Risk (per share)
$5.00
Reward (per share)
$10.00
Risk-Reward Ratio
1:2
Visual Representation
Trade Quality
Good
Adjust your parameters on the left to recalculate.
Risk-Reward Ratio Tips
- • Aim for a minimum risk-reward ratio of 1:2 for most trades.
- • The higher the reward compared to risk, the better your long-term profitability even with a lower win rate.
- • Consider market conditions and volatility when setting take profit targets.
- • A risk-reward ratio of 1:3 or higher may allow you to be profitable even with a win rate of only 30-40%.