What is the risk-to-reward ratio?
Risk Management
The risk-to-reward ratio compares how much you stand to lose on a trade against how much you stand to gain, expressed as a ratio like 1:2 or 1:3.
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A 1:2 ratio means you’re risking ₹1 to potentially make ₹2 — even with a win rate below 50%, a favorable ratio can still be profitable over many trades. It’s a core part of deciding whether a trade setup is worth taking before you enter.
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