Risk Reward Ratio in Forex

The risk reward ratio is the ratio used by many investors / traders to compare the expected return on an investment with the amount of risk taken to get the return. This ratio is calculated mathematically by dividing a large potential loss of a trader if the price moves in an unexpected direction (in other words: risk) with a large potential profit that a trader expects to receive when a position is closed (in other words: reward)
So, let me explain more about the risk reward ratio. Say you want to trade on a EURUSD pair. You use 0.1 lot with a stop loss of 30 pips and a profit target of 60 pips. Your risk ratio (from stop loss) and reward (from profit target) is 1: 2 (30:60), where you trade double the amount of your risk. The risk reward ratio will be different for each trader. Based on his trading strategies and market situation, the risk reward ratio for every trade is not always the same. As a forex trader myself, I am still struggling to follow a good risk reward ratio. I usually trade with a risk reward ratio of 1: 1 which is the standard risk reward ratio in trading. But in my opinion, the risk reward ratio of 1: 1 is not so good if you don't have a trading strategy that is not really good.


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I have never used this risk reward ratio because I trade with scalping style so it is rather difficult to apply the risk reward or I usually use a risk reward of 1: 1

Using a risk reward ratio 1:1 actually means your trading strategy must be very good, however, 1:2 will make you feel better. 1 rsik, 2 reward.

I agree more with 30:60 / 1: 2 than the post 1 explanation. 
Because then more control will be greater profit.

Indeed, the risk ratio is one of our successes in forex trading, I always pay attention to this

I have never used this risk reward ratio because I trade with scalping style so it is rather difficult to apply the risk reward or I usually use a risk reward of 1: 1

If trading using Scaping does not need Risk Rewartd. But if you use Intra day or swing then Risk Reward is very important

The application of risk reward ratio is the same as applying money management where the trader must adjust the trading style with the appropriate SL and TP ratio, likewise if we use lots in trading, it must also be in accordance with several things such as capital, style and trading strategy.

Risk reward ratio which is often abbreviated as RRR is one of the risk management that is quite important for me and many are also applied by traders and even proficient traders in the trading system.