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.
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