Risk reward calculator
Compare what you could lose with what you could win, before you buy.
How to use it
- Type the price you plan to buy at.
- Type your stop loss, where you will sell if it goes wrong.
- Type your target and read the ratio.
What the ratio tells you
A ratio of 1 : 2 means you could win twice what you risk. With that, you can be wrong more often than you are right and still come out ahead.
FormulaRatio = (Target - Entry) / (Entry - Stop loss)
Wins needed to break even
This shows how often a trade like this must work just to break even. The higher the ratio, the fewer wins you need.
Learn more
Support and resistance made simpleQuestions
What is a good risk reward ratio?
Many traders look for at least 1 : 2, so the possible gain is twice the possible loss. It depends on how often your trades work.
What is a stop loss?
It is the price where you sell to stop a losing trade from getting worse. You decide it before you buy.
Where do I find good stop loss and target levels?
Support and resistance levels are a common choice. StockYan's scanners and charts show them for every NEPSE stock.
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