What is the best risk-reward ratio in trading?
What is the risk-reward ratio in trading? The risk-reward ratio in trading is a fundamental principle for calculating the potential positive outcome relative to the risk of a trade. In fact, it is a concept that might assist in maintaining a balanced and calculated approach to trading. By evaluating the potential profit against the potential loss before entering a trade, traders may enhance their risk-management approach. Traders may employ the risk-reward ratio in trading to strike a balance between risk and payouts. The main goal is to try to avoid disproportionate exposure…
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