It is the ratio of potential profits to potential losses. For example, if a trade suffers a 50 pip loss, then the expected return may be 150 pips, if 3:1 reward-to-risk is used.
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It is the ratio of potential profits to potential losses. For example, if a trade suffers a 50 pip loss, then the expected return may be 150 pips, if 3:1 reward-to-risk is used.
« Back to Glossary Index
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