Risk to reward
Risk to reward compares what you can lose to what you can gain on one trade. A 1:2 ratio means you stand to gain twice what you risk, so you can be wrong more often and still come out ahead.
Rates for pegged currencies are fixed. Edit the rate for others.
Risk to reward
How much you stand to gain for each unit you risk.
Risk (pips)–
Reward (pips)–
Risk : reward–
Win rate needed to break even–
How to use it
- Enter your entry, stop loss and take profit prices.
- Set the pip size for the pair.
- Read the ratio and the minimum win rate needed to break even.
Questions, answered plainly.
What ratio is good?
Many traders only take setups of 1:1.5 or better. Tadawal Now signals ship at 1:1.5 or above.
How is the break-even win rate calculated?
Win rate = 1 divided by (1 + reward/risk). At 1:2 you break even winning 33% of trades.
Should I always use the same ratio?
No. The stop goes where the setup is wrong and the target where the move is likely to stall; the ratio follows from that.