Calculate Your Risk-to-Reward
This tool’s primary function is to assist investors and traders in managing their risk by clearly outlining the risk they are taking in proportion to the potential reward they seek in any position.
One of the biggest downfalls of traders is the tendency to focus too heavily on the gains and not control the losses.
Use this calculator to quickly access how much risk a position is exposing you to relative to the potential gain.
Many professional traders will aim for a Risk-to-Reward ratio in excess of 2-1.