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# What is the risk/reward ratio? Mudah Faham

#### sureheboh.com

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Aku letak jelah ye.. tak payahlah nak di BM kan sebab BI mudah je ni.

What is the risk/reward ratio?

The risk/reward is the ratio between the potential gain and the potential loss.

Example: We have a target at +100pips and our stop is at -50pips. Our risk/reward ratio will be 50/100 = 0.5

In the technical analysis we try to have a risk/reward < 0.5. Our potential gain should be twice of our potential loss.
More the trend is clear more we accept high risk/reward.

Nasihat aku pulak:
Each trade is dangerous, take care and put your stop loss.

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Aku letak jelah ye.. tak payahlah nak di BM kan sebab BI mudah je ni.

What is the risk/reward ratio?

The risk/reward is the ratio between the potential gain and the potential loss.

Example: We have a target at +100pips and our stop is at -50pips. Our risk/reward ratio will be 50/100 = 0.5

In the technical analysis we try to have a risk/reward < 0.5. Our potential gain should be twice of our potential loss.
More the trend is clear more we accept high risk/reward.

Nasihat aku pulak:
Each trade is dangerous, take care and put your stop loss.

Setuju dgn TT..

Risk Reward 1:2 sudah memadai sbb kalau 1:3 or 1:4, susah nk hit TP... alih2 pi hit SL....

Agree...

good explanation here.

You are elaborating things in a good way and that is very good for you.

hi,
he risk/reward is the ratio between the potential gain and the potential loss.

Example: We have a target at +100pips and our stop is at -50pips. Our risk/reward ratio will be 50/100 = 0.5

In the technical analysis we try to have a risk/reward < 0.5. Our potential gain should be twice of our potential loss.
More the trend is clear more we accept high risk/reward.
regards,
phe9oxis,
http://guidebuddha.com

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