What is Risk-reward ratio?

Risk-reward ratio compares potential loss (usually stop-loss distance) to potential gain (take-profit distance). A 1:2 risk-reward means you risk one unit to target two.

On PipAlert, you can estimate risk-reward from a Signal's entry, stop loss, and take-profits before you size the trade. Prefer Channels whose typical ratios match your plan.

Risk-reward alone is not enough: win rate, spread, and execution still matter. Use the risk calculator so dollar risk stays fixed even when pip distance changes.