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R Multiplier

The risk-to-reward ratio is used for assessing the potential profit (reward) against the potential loss (risk) of a trade. Stock traders and investors use the R/R ratio to fix the price at which they'll exit the trade, irrespective of whether it generates profit or loss. A stop-loss order is generally used to exit the position in case it starts moving in an opposite direction to what a trader anticipated.

The relationship between the risk and reward helps determine whether the potential returns outweigh the risk and vice versa. In short, the R/R ratio helps traders determine whether a particular trade is worth taking or not.


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Close alert 2023.12.11 01:26 
 

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Version 1.1 2023.12.11
Crash has been fixed