Crypto glossary
Risk-Reward Ratio
A comparison between planned loss and potential reward.
What Risk-Reward Ratio means
A comparison between planned loss and potential reward. The practical meaning depends on the market, contract and exchange rules. Traders should confirm order behaviour and fees before relying on this concept.
Example
A simplified example can help explain the term, but an example is not a recommendation or a prediction.
Risk reminder Crypto trading involves substantial risk. Results are not guaranteed. Volatility, fees, funding, liquidity and slippage can affect outcomes.