Lessons that explain Risk-to-reward ratio
- Stop Distance and Risk-to-Reward Course 5, Leverage, Margin & Risk
- Passing an Evaluation Course 3, Prop Trading
- Stop Loss and Take Profit Course 4, Accounts, Platforms & Orders
Risk and money
What is Risk-to-reward ratio?
The distance to the target divided by the distance to the stop. At 1:2 you risk one unit to make two, and need a win rate above 33 percent to profit before costs.