Risk / Reward Calculator
Evaluate the risk/reward ratio of each trade before entering a position. Visualize the SL and TP distance in pips and the R:R ratio for Forex, metals and cryptocurrencies.
Mastering the risk/reward ratio in trading
What is the R:R ratio?
The risk/reward ratio compares the distance between your entry price and your stop loss (the risk) to the distance between your entry and your take profit (the reward). A 1:2 ratio means you are aiming for a gain twice your risk.
The breakeven point
With a 1:2 ratio, you only need to win 34% of your trades to be profitable. With a 1:3 ratio, the threshold drops to 25%. The higher your R:R, the less your win rate needs to be — this is the mathematical foundation of a sustainable strategy.
Common mistakes
Many traders move their stop loss after entry, degrading their initial R:R. Others place an overly ambitious TP that is never hit. Calculate your ratio before entering a position and stick to it — discipline makes the difference in the long run.
R:R and money management
The risk/reward ratio is inseparable from money management. Combine an R:R of at least 1:2 with a risk of 1-2% per trade and you get a solid framework for protecting your capital while maximizing your expected gains.