Ricky Gutierrez
Ricky Gutierrez
@rickygutierrezz·1.2M subscribers·5.3K videos

What are risk to reward ratios: trading edge explained for beginners

Posted

April 13, 2024

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6,582

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253

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16

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4.09%

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The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. The ratio helps assess the expected return and risk of a given trade. In general, the greater the risk, the greater the expected return demanded. An appropriate risk reward ratio tends to be anything greater than 1:3.

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