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Trading Foundations
Risk-to-Reward Ratio
Learn how to compare possible loss and possible gain before a demo trade, and why risk-to-reward must be combined with win rate, chart context, and risk management.
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Key terms
trading-foundationsrisk-to-reward-ratiointermediaterisk-rewardrisk-managementreward-to-riskstop-losstake-profittarget-planningposition-sizingwin-rateexpectancytrade-plansupport-and-resistancevolatilityspreadslippagedemo-practicetrading-journaleducational-only