Risk/Reward Calculator
Calculate risk/reward ratio and potential returns for your trades
₹100
₹120
₹90
₹10,000
Risk/Reward Ratio
1:2
Potential Profit
₹2,000 (20%)
Potential Loss
₹1,000 (10%)
Number of Shares
100
*Excludes trading costs and slippage
Understanding Risk/Reward
A risk/reward ratio of 1:3 or higher is generally considered good for trading. This means your potential profit is 3 times your potential loss.
Risk Management Tips
- Always set stop-loss orders to limit potential losses
- Consider using a minimum 1:2 risk/reward ratio
- Don't risk more than 1-2% of your portfolio per trade
- Account for trading costs in your calculations
- Use proper position sizing based on your risk tolerance