رسک ٹو ریوارڈ ریشو بتاتا ہے کہ آپ ایک ٹریڈ میں جتنا نقصان برداشت کر رہے ہیں، اس کے مقابلے میں کتنا منافع حاصل کرنا چاہتے ہیں۔ اگر آپ کا رسک دس ڈالر اور ٹارگٹ بیس ڈالر ہے تو یہ ایک اور دو (1:2) کا ریشو ہے۔ اچھے ریشو کے ساتھ آپ آدھی سے کم ٹریڈز جیت کر بھی منافع میں رہ سکتے ہیں۔ اس مضمون میں حساب، مثالیں اور عام غلطیاں آسان الفاظ میں بیان کی گئی ہیں۔
In this guide
Many new traders only ask one question: “Will this trade win?” Professional traders ask a second one: “If it wins, how much do I make compared with what I lose if it fails?” That comparison is the risk to reward ratio, and it is one of the simplest tools for staying in the game long enough to get good.
What is the risk to reward ratio?
Risk is the distance from your entry to your stop loss. Reward is the distance from your entry to your take profit. The ratio compares the two:
Risk to reward = (entry − stop loss) : (take profit − entry) for a buy, and the other way round for a sell.

Worked example on gold
You buy gold (XAUUSD) at 4,000. You place your stop loss at 3,990 and your take profit at 4,020.
- Risk: 4,000 − 3,990 = $10 per ounce
- Reward: 4,020 − 4,000 = $20 per ounce
- Risk to reward: 10 : 20 = 1:2
If you trade 0.10 lot (10 ounces), you lose about $100 if the stop is hit and make about $200 if the target is hit, before spread and commission.
Why it matters: the win rate you need
The better your ratio, the fewer trades you need to win just to break even. The formula is: break-even win rate = risk ÷ (risk + reward).
| Risk to reward | You win | Break-even win rate |
|---|---|---|
| 1:1 | the same as you risk | 50% |
| 1:1.5 | 1.5 times your risk | 40% |
| 1:2 | 2 times your risk | 33.3% |
| 1:3 | 3 times your risk | 25% |
Example: you risk $10 on each of 10 trades at 1:2 and win only 4 of them. Your 4 winners make 4 × $20 = $80 and your 6 losers cost 6 × $10 = $60. You lost more trades than you won, but you are still $20 up.
A good ratio is not enough on its own
A 1:5 target sounds great, but if price almost never reaches it, your win rate falls and the ratio helps nothing. The target has to make sense on the chart:
- Put the stop loss where your idea is proven wrong, for example beyond a swing low or a support zone, not at a random number of pips.
- Put the take profit before the next clear obstacle, such as resistance or a previous high.
- Then calculate the ratio. If it is below about 1:1.5, it is often better to skip the trade than to move the stop closer.
- Remember the spread: it slightly increases your real risk and reduces your real reward, especially on short-term gold trades.
Risk to reward with several targets
Many signals, including the ones in our VIP Signals room, give more than one target (TP1, TP2, TP3). A common plan is to close part of the position at TP1 and move the stop loss to the entry price for the rest. Your real ratio then depends on how much you close at each target, so write the plan down before you enter. Our guide on how to follow trading signals explains this step by step.
Ratio and lot size work together
The risk to reward ratio tells you whether a trade is worth taking. Your lot size decides how much money that risk is. Most of our lessons use the 1% rule: never risk more than 1 to 2% of your account on one trade. Read how to calculate lot size from your stop loss, or use the free lot size calculator.
Frequently asked questions
What is a good risk to reward ratio?
Many traders aim for at least 1:1.5 or 1:2. The right ratio also depends on how often your strategy wins.
Is 1:1 risk to reward bad?
Not always, but you need to win more than half of your trades just to break even, and costs like spread make it harder.
Should I move my stop loss to get a better ratio?
No. Place the stop where the chart says your idea is wrong. If the ratio is then too low, skip the trade or wait for a better entry.
This article is for education only and is not financial advice. Trading carries a high level of risk and you can lose some or all of your money. Past results do not guarantee future results.
