Risk Reward Calculator
The free risk reward ratio calculator enables users to determine trade setup quality by evaluating risk against expected reward. The tool enables traders to evaluate trade quality before entry which leads to better decisions and sustained long-term performance.
Risk / Reward Calculator
What Is the Risk-Reward Ratio?
The risk-reward ratio measures the amount of risk taken on a trade against the potential gains. It is one of the most important metrics in trading. For example, a 1:2 ratio means you risk ₹1 to potentially gain ₹2.
By consistently aiming for high reward-to-risk setups, traders can stay profitable even with a lower win rate. Our risk reward ratio calculator makes this easy by doing the math for you in seconds.
How to Use the Risk Reward Calculator
The process to determine risk reward ratio remains unclear to you. Here’s how:
- Enter your entry price.
- Enter your stop-loss price (risk level).
- Enter your target price (reward level).
The calculation will produce the ratio and reward-to-risk percentage and determine if the trade meets your target criteria after you click calculate.
The tool provides maximum value to technical traders and scalpers and users who need to follow specific trade setups.
Why Risk-Reward Ratio Matters
Great strategies will not work if the risk/reward ratio is not correct. If you only take trades with a minimum 1:2 or 1:3 ratio, you can afford to be wrong more often and still grow your account.
This calculator helps remove guesswork, bringing discipline to your trading plan and helping you avoid emotional decisions.
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