OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Reward / Risk Ratio'

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What is Reward / Risk Ratio in Options Trading ?

Reward / Risk Ratio
The trader's measure of riskiness of the trade. This ratio is the ratio arrived after dividing the expected profit amount with the expected loss amount if the stop loss point is reached.




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Hi, this may be interesting you: Reward / Risk Ratio! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/reward-risk-ratio/