What is the Risk Reward Ratio and How does it Work?
The risk/reward ratio helps traders assess if a trade is worth it by comparing potential gains to the risk involved. Lower ratios mean less risk for similar rewards.
The risk/reward ratio helps traders assess if a trade is worth it by comparing potential gains to the risk involved. Lower ratios mean less risk for similar rewards.
Risk is an essential part of day-to-day trading – you cannot make any returns without risking your capital and one of the most important aspects of trading is Risk management. You can’t be a successful trader if you can’t manage your risk.