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

1
2

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%.