Risk to Reward Ratio Explained…

Risk to reward ratio is used by traders and investors to
calculate the ratio of potential gain to potential loss
in a Forex trade. Mathematically, this ratio is calculated
by dividing the amount of the expected profit with the amount
of the assumed risk.
Risk to reward ratio = Risk (potential
loss*)/ Reward (Potential Gain**)

Before jumping into the market, traders should
know [...]