NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)NIFTY 50 24,010.60 ▲ 195.25 (+0.82%)SENSEX 78,540.17 ▲ 499.43 (+0.64%)RELIANCE 2,945.10 ▲ 33.20 (+1.14%)HDFC BANK 1,678.40 ▼ 5.39 (−0.32%)TCS 3,910.75 ▲ 23.71 (+0.61%)HINDALCO 1,149.70 ▲ 45.92 (+4.16%)INFOSYS 1,556.20 ▼ 7.03 (−0.45%)ASIAN PAINTS 2,671.90 ▲ 7.46 (+0.28%)

What is Risk-Reward Ratio?

Risk-Reward Ratio — The ratio of how much you stand to lose versus gain on a trade — used to judge whether a trade is worth taking.

In simple terms

A 1:3 risk-reward risks ₹1 to make ₹3.

Why Risk-Reward Ratio matters when you invest

Understanding risk-reward ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

Risk-Reward Ratio — frequently asked questions

What is Risk-Reward Ratio?

The ratio of how much you stand to lose versus gain on a trade — used to judge whether a trade is worth taking.

What does Risk-Reward Ratio mean in the stock market?

The ratio of how much you stand to lose versus gain on a trade — used to judge whether a trade is worth taking. A 1:3 risk-reward risks ₹1 to make ₹3.

Can you give an example of Risk-Reward Ratio?

A 1:3 risk-reward risks ₹1 to make ₹3.

Put it into practice — open a free account.

Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.

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