what do you know about risk/reward ratio

Hi Respected Forum Members
A Risk to Reward ratio 1:2 means you are risking 1$ to make 2$. Risk is a amount of money that you may lose in trade when it hits its Stop Loss, and reward is a amount of money you win when it hit it's Take profit. The larger the profit target against the stop loss the smaller the risk reward ratio, Which mean that your risk is smaller then your reward.

If you learn about risk reward ratio then it is very good because then you know about reward ratio risk then you can I would prefer through Forex trading. trading often used this approach to plan which trades to make and the ratio is calculated by dividing the amount are traded stands to lose if they price of an acid moves in an an an accepted traction the risk by the amount of profit the trader expects to have made than the position is close the reward.