Risk-to-Reward Calculator

The Risk-to-Reward Calculator is a fundamental tool for disciplined traders. It helps you assess whether a potential trade offers sufficient reward relative to the risk you're taking. Professional traders typically only take trades with favorable risk-reward ratios (1:2 or better).

How It Works

• Entry Price: The price at which you enter the trade
• Stop Loss: The price where you'll exit to limit losses
• Take Profit: Your target profit price
• Risk Amount: How much you're willing to lose (Entry - Stop Loss)
• Reward Amount: Potential profit (Take Profit - Entry)
• R:R Ratio: Reward divided by Risk (e.g., 1:3 means $3 reward for $1 risk)

Use Cases

• Evaluating whether a trade setup is worth taking
• Setting optimal stop loss and take profit levels
• Maintaining trading discipline and consistency
• Comparing multiple trade opportunities