risk reward ratio

Mar 23rd 2019 at 10:13 AM

risk reward ratio


The risk/reward ratio helps investors manage their danger of losing money on trades. Even though a trader has some profitable trades, he will shed money with time if his win price is under 50%. The risk/reward ratio measures the difference among a trade entry point to a stop-loss in addition to a sell or take-profit order. Comparing these two gives the ratio of profit to loss, or reward to threat.



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