Trading Calculators

What is Risk to Reward Ratio (R:R)? The Risk to Reward Ratio compares the potential profit of a trade to the potential loss. For example, a 2:1 ratio means you could make $2 for every $1 you risk. Entry Price is where you enter the trade. Stop Loss is the price at which you'll exit if the trade moves against you (your risk). Take Profit is the price at which you'll exit if the trade moves in your favor (your reward). A higher R:R ratio (like 3:1 or 5:1) is generally better as it means you can be profitable even if you win fewer trades.