Key Takeaway
A risk-reward ratio of 1:3 means you risk ₹1 to potentially earn ₹3. Professional traders target a minimum 1:2 ratio , even with a 40% win rate, this ratio produces net-positive returns over time.
Risk-Reward Ratio Calculator
Evaluate the mathematical expectancy of your trade setups.
Risk : Reward Ratio
1 : 3.00
Advertisement
Frequently Asked Questions
What is a good risk-reward ratio?
A ratio of 1:2 or higher is generally recommended. This means your potential profit is at least twice as large as your potential loss.
Can I be profitable with a low win rate?
Yes. If your risk-reward ratio is high (e.g., 1:3), you only need to win 30% of your trades to be profitable over the long run.
Why do beginners fail with risk-reward?
Beginners often take small profits early and let losing trades run, creating an inverted risk-reward ratio (e.g., risking ₹3 to make ₹1), which mathematically guarantees long-term ruin.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Was this calculator helpful?
Advertisement