#RiskRewardRatio

**#RiskRewardRatio** is a key trading metric that compares the potential profit of a trade to its potential loss, helping traders assess whether a setup is worth entering.

*Example:* A 1:3 ratio means risking $100 to gain $300.

*Added 100 characters:* "Smart traders use risk-reward ratios to filter high-probability trades, minimize losses, and maximize gains over time."

### How It Works:

- **Risk** = Distance from entry to stop-loss

- **Reward** = Distance from entry to take-profit

- **Ideal Ratio** = Typically 1:2 or higher (varies by strategy)

*Pro Tip:* Always pair it with proper position sizing for optimal risk management.

Want a breakdown for your trading style? Ask away! 🚀