Risk / Reward

How to use Risk / Reward

Calculate risk/reward ratio from stop and target distances.

What to check

Contract size, pip value, minimum trade size and margin rules vary by broker and instrument. JPY pairs may use a different pip decimal convention, so verify the specification shown by your broker.

Example workflow

Start with the amount of account equity you are willing to risk, then enter the distance to your stop and review the calculated result. Higher leverage changes margin requirements but does not by itself reduce price risk on the same position.

FAQ

Can I place an order using the result directly?
Use it as an estimate and verify contract size, minimum size, margin and conversion rules with your broker.