{"id":2557,"date":"2026-01-21T19:19:20","date_gmt":"2026-01-21T19:19:20","guid":{"rendered":"https:\/\/www.mytradingland.com\/uni\/?p=2557"},"modified":"2026-01-22T09:40:02","modified_gmt":"2026-01-22T09:40:02","slug":"risk-to-reward-ratio","status":"publish","type":"post","link":"https:\/\/www.mytradingland.com\/uni\/risk-to-reward-ratio\/","title":{"rendered":"Only Take Trades With A Good Risk To Reward Ratio"},"content":{"rendered":"

What is Risk to Reward Ratio in Forex?<\/h2>\n

Risk to Reward (RR) ratio is a measure of how much your stop loss is going to be, versus how much profit you hope to make from a trade.<\/p>\n

Every time you enter into a trade, there is a 50% chance that you are going to lose. As traders, we must accept this reality and prepare for it by ensuring we dont risk more than we intend to gain.<\/p>\n

In simple terms, monetary value of your Take profit (TP) should always be more than that of your Stop Loss (SL). In the image, you will see the SL is worth 0.52 USD while the TP is worth 1.48 USD; meaning the reward exceeds the risk, which is good. <\/p>\n

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Risk to Reward Example<\/h2>\n\n\n\n\n\n\n\n
\ud83d\udcb0Stop Loss (risk) <\/th>\n\ud83e\uddefTake Profit (reward) <\/th>\n\u2696\ufe0fRR Ratio<\/th>\n\ud83d\udce3Remark<\/th>\n<\/tr>\n
$10<\/td>\n$10<\/td>\n1:1<\/td>\nFair<\/td>\n<\/tr>\n
$5<\/td>\n$10<\/td>\n1:2<\/td>\nGood<\/td>\n<\/tr>\n
$4<\/td>\n$10<\/td>\n1:2.5<\/td>\nGood<\/td>\n<\/tr>\n
$20<\/td>\n$10<\/td>\n2:1<\/td>\nBad<\/td>\n<\/tr>\n
$30<\/td>\n$10<\/td>\n3:1<\/td>\nBad<\/td>\n<\/tr>\n<\/table>\n

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