Your risk against your reward
Both distances are yours. This only divides one by the other, and turns both into rupees.
Your numbers
Your own number. This site does not pick it.
Also yours.
What that gives you
Reward for each unit of risk
2×
- At risk, in rupees
- ₹2,250
- Planned gain, in rupees
- ₹4,500
Nothing you type here is saved, sent anywhere, or used for anything else. Close the tab and it is gone.
How this works
The ratio on its own says nothing about whether a trade is worth taking, because it does not know how often you are right. A one-to-three that works a quarter of the time and a one-to-one that works two thirds of the time end up in very different places.
What it is good for is comparing what you planned with what you did. If your closed trades keep showing a smaller reward than the one you set out with, the exit moved after you entered.
Both distances come from you. Nothing here suggests either.
Questions people ask
- What ratio should I use?
- That is not a question this site will answer. A ratio only means something alongside how often you are right, and both of those are yours to work out from your own record.
This one connects to
Small profits booked fast, losses left to run
What this does not say: This divides two numbers you typed. It does not tell you where to exit, what ratio to aim for, or whether any trade is worth taking.