Risk/Reward Ratio Calculator
Calculate the potential risk and reward of your trades in USD or INR.
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Risk/Reward Analysis
Risk/Reward Ratio
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High Risk
Balanced
High Reward
Risk Amount
Potential Loss
Reward Amount
Potential Profit
Risk per Unit
Loss per Unit
Reward per Unit
Profit per Unit
Understanding Risk/Reward Ratio
What is Risk/Reward Ratio?
The risk/reward ratio measures the potential profit of a trade against its potential loss. It helps traders evaluate whether a trade is worth taking based on the potential upside compared to the downside.
How to Calculate
Risk/Reward Ratio = (Take Profit – Entry Price) / (Entry Price – Stop Loss)
Interpreting the Ratio
- Ratio > 1: Potential reward is greater than risk (favorable)
- Ratio = 1: Potential reward equals risk (neutral)
- Ratio < 1: Potential reward is less than risk (unfavorable)
Tip: Many successful traders aim for a risk/reward ratio of at least 1:2 or higher.