The risk-reward ratio

Compare what you risk to what you aim to make, before you enter.

Risk & Money ManagementLesson 2 of 7

All lessons

By the end of this lesson you'll be able to:

01Define the risk-reward ratio
02Calculate a simple ratio
03Explain how it works with win rate

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is a Risk-Reward Ratio in Trading?

Key terms

Risk-Reward Ratio Win Rate Expectancy Stop Loss

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does a 1:2 risk-reward ratio mean?
Question 02
You risk $50 to aim for $150. What is your risk-reward ratio?
Question 03
Long at 100, stop at 98, target at 106. What is your risk-reward?
Question 04
What does a good risk-reward ratio allow?
Question 05
With a 1:2 ratio, you can still profit even if your win rate is only about:
Question 06
You want to risk $100 on a trade at 1:2. Your profit target should be:
Question 07
If you risk a lot to make a little, what do you need to stay profitable?
Question 08
What does chasing tiny targets with wide stops (poor risk-reward) force you to do?
Question 09
Risk-reward should always be judged alongside what?
Question 10
When should you decide your risk-reward for a trade?

Answered 0 of 10 · pass 70% (7/10) to complete

Risk & Money Management2 of 7

The risk-reward ratio

Compare what you risk to what you aim to make, before you enter.

Risk & Money ManagementLesson 2 of 7

All lessons

By the end of this lesson you'll be able to:

01Define the risk-reward ratio
02Calculate a simple ratio
03Explain how it works with win rate

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is a Risk-Reward Ratio in Trading?

Key terms

Risk-Reward Ratio Win Rate Expectancy Stop Loss

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does a 1:2 risk-reward ratio mean?
Question 02
You risk $50 to aim for $150. What is your risk-reward ratio?
Question 03
Long at 100, stop at 98, target at 106. What is your risk-reward?
Question 04
What does a good risk-reward ratio allow?
Question 05
With a 1:2 ratio, you can still profit even if your win rate is only about:
Question 06
You want to risk $100 on a trade at 1:2. Your profit target should be:
Question 07
If you risk a lot to make a little, what do you need to stay profitable?
Question 08
What does chasing tiny targets with wide stops (poor risk-reward) force you to do?
Question 09
Risk-reward should always be judged alongside what?
Question 10
When should you decide your risk-reward for a trade?

Answered 0 of 10 · pass 70% (7/10) to complete

Risk & Money Management2 of 7

The risk-reward ratio

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does a 1:2 risk-reward ratio mean?

You risk $50 to aim for $150. What is your risk-reward ratio?

Long at 100, stop at 98, target at 106. What is your risk-reward?

What does a good risk-reward ratio allow?

With a 1:2 ratio, you can still profit even if your win rate is only about:

You want to risk $100 on a trade at 1:2. Your profit target should be:

If you risk a lot to make a little, what do you need to stay profitable?

What does chasing tiny targets with wide stops (poor risk-reward) force you to do?

Risk-reward should always be judged alongside what?

When should you decide your risk-reward for a trade?

The risk-reward ratio

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does a 1:2 risk-reward ratio mean?

You risk $50 to aim for $150. What is your risk-reward ratio?

Long at 100, stop at 98, target at 106. What is your risk-reward?

What does a good risk-reward ratio allow?

With a 1:2 ratio, you can still profit even if your win rate is only about:

You want to risk $100 on a trade at 1:2. Your profit target should be:

If you risk a lot to make a little, what do you need to stay profitable?

What does chasing tiny targets with wide stops (poor risk-reward) force you to do?

Risk-reward should always be judged alongside what?

When should you decide your risk-reward for a trade?