Risk Management
Risk/Reward Calculator
Visualize and calculate risk-to-reward ratios for your trade setups.
Use this result in your trading workflow
Log the result and compare it against the trades you actually take.
How to Use This Calculator
1
Enter your entry price — The price at which you plan to enter the trade.
2
Set your stop loss price — The price level where you'll exit if the trade goes against you.
3
Set your take profit price — The target price where you'll take your profits.
4
Choose trade direction — Select LONG (buy) or SHORT (sell) based on your analysis.
5
Analyze the R:R ratio — A minimum 1:2 ratio is recommended for consistent profitability.
What is a Risk/Reward Ratio?
The Risk/Reward Ratio (R:R) compares the potential profit of a trade to its potential loss. For example, a 1:3 R:R means you can make 3x what you risk.
Understanding R:R is crucial because it determines the minimum win rate you need to be profitable. With a 1:2 ratio, you only need to win 33% of your trades to break even.
Professional traders typically look for setups with at least a 1:2 risk/reward ratio, meaning the potential reward is at least twice the risk.
Key Features
Entry/Stop Loss/Take Profit inputs
LONG and SHORT support
R:R ratio calculation
Break-even win rate
Pip distance calculation
Visual comparison
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Frequently Asked Questions
A minimum of 1:2 is commonly recommended. This means for every $1 you risk, you aim to make $2. Higher ratios like 1:3 or 1:5 are even better but harder to achieve consistently.
With a 1:1 R:R, you need a 50%+ win rate. With 1:2, you only need 33%+. With 1:3, just 25%+. Better R:R ratios allow you to be profitable with fewer winning trades.
Not necessarily. Very high R:R setups (like 1:10) have lower probability. Find a balance between R:R ratio and win probability that suits your strategy.