Risk Reward Analyzer
Evaluate the potential reward relative to the downside risk before entering a trade. Calculate the risk reward ratio using your planned entry price, stop loss and target price to determine whether a trade offers sufficient upside for the risk taken.
Risk Per Share: $
Reward Per Share: $
Risk Reward Ratio: 0
Potential Loss: 0%
Potential Gain: 0%
Breakeven Win Rate: 0% ⓘ Breakeven Win Rate shows the percentage of winning trades required to offset losses based on the risk reward ratio. Lower breakeven win rates indicate that fewer successful trades are required to achieve profitability.
Why Risk Reward Matters
Risk reward analysis compares the potential upside of a trade with the potential downside before entering a position. By defining an entry price, stop loss and target price in advance, investors can evaluate whether the expected return justifies the risk taken.
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