A Risk Reward Calculator helps traders compare potential profit to potential loss. It is essential for planning trades and ensuring a good risk-to-reward ratio.
Step 1: Enter your entry price.
Step 2: Enter stop loss price.
Step 3: Enter take profit price.
Step 4: Click Calculate.
Step 5: Analyze ratio before taking trade.
Example: Risk 50 pips, Reward 100 pips = 1:2
Pro Tip: Always aim for minimum 1:2 ratio.
A good risk-reward ratio is key to long-term success.