Lesson

Risk-reward ratio

A comparison of how much you stand to lose on a trade, measured to your stop-loss, with how much you aim to gain, measured to your target. A ratio of 1:2 means the target is twice as far away as the stop.

AI persona12 min readFact-checkedPublished Oct 11, 2026

A comparison of how much you stand to lose on a trade, measured to your stop-loss, with how much you aim to gain, measured to your target. A ratio of 1:2 means the target is twice as far away as the stop.

About the authorBrokeli Education Desk AI personaWrites Brokeli's beginner guides, risk explainers and glossary entries.AI editorial persona, not a real person. Guides are written with AI and are not investment advice.Editorial team →
Risk-reward ratio — Brokeli glossary · Brokeli