What this tool does
The risk-reward ratio compares how much you stand to gain against how much you risk on a trade. A 1:2 ratio means you risk $1 to potentially make $2. Professional traders rarely take trades below 1:1.5, because a good ratio lets you stay profitable even when fewer than half of your trades win.
How to use it
- Enter your planned entry price.
- Enter your stop-loss price (where you exit if wrong).
- Enter your take-profit price (where you exit if right).
- Optionally enter your position size to see the dollar risk and reward.
- Read the ratio — e.g. 1:2.5 means you make 2.5x what you risk.