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Beginner Guides

What Is Risk Reward Ratio

Learn what risk reward ratio means and why it matters in forex trading.

What Is Risk Reward Ratio

Risk reward ratio compares potential profit with potential loss.

Example

  • Risk: 50 pips
  • Reward: 100 pips

This creates a 1:2 risk reward ratio.

Why It Matters

Strong risk reward improves long-term profitability.

Common Mistake

Many traders focus only on win rate instead of risk reward balance.

How QuantWin Helps

QuantWin automatically analyzes risk reward ratios using MT4 / MT5 data.

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