Risk-Reward Calculator

The risk-reward ratio compares potential loss against potential profit. A higher ratio means you're risking less to make more.

Good Risk-Reward Ratios:

• 1:2 - You risk ₹1 to make ₹2 (minimum recommended)
• 1:3 - You risk ₹1 to make ₹3 (excellent)
• 1:4+ - Very favorable setups (rare)

Win Rate Threshold:

With a 1:2 RR ratio, you only need a 33% win rate to be profitable. With 1:3 ratio, you need just 25% win rate. This makes proper risk-reward management crucial for long-term trading success.

Pro Tip: Always calculate risk-reward BEFORE entering a trade. If the ratio is less than 1:2, skip the setup.