What is reward : risk ratio ? What does it mean 1.87 , 1.34 ratios . How can I calculate the risk : reward ratio ?
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Hi did you visited the education section already? Regards Greg
Hello , yes , I did . Thanks . I’m still don’t understand what does it mean when traders refer to a 1:24 risk reward or those combined numbers . Anyways thank you 
The risk:reward ratio (written also as r:r) is the rlationship between the amount of capital you will lose if your trade fails (risk) and the amount of capital you will gain if your trade wins (reward). The risk s always expressed first and the reward is always calculated as if the risk had a value of 1.
Therefore if your trade will lose ÂŁ50 if your stop-loss is hit, but will gain ÂŁ125 if your take profit exit order is hit, this gives a risk:reward of 50:125 which is 1:2.5, because the reward is 2.5 times greater than the risk.
This should never be expressed the other way round as 2.5-to-1 or anything:1, as that would be a reward to risk ratio, which does not exist.
Hello there , OMG thank you so much , I finally got it , I was so confused. 
.
One more question 
. Have you ever heard of measuring your risk in percentage ? Since I was watching a webinar saying about that 
Yes, when risk is expressed as a percentage, it means the capital you could lose from your account if your trade fails, as a percentage of the total capital in your account.
So, if you have £10,000 in your account and you set a stop-loss and adjust your position’s size so that if your stop-loss is hit, you will lose £200, then your risk is 2%.
Many people say that the maximum risk per trade should be 2%, many say aim for 1%.
One more time thank you for your time ! You helped me a lot !!!
You can find your answer in Babypips school. Go to the education section. There you can learn all the important things about trading easily.
Here you go:
Similar thread on the forum:
what you think guys , there is any difference between money and risk management?
Hi,
This got me confused, so I referenced an article on the subject. I have always thought in terms of R multiples, and so mentally defined a “reward to risk” number. I also thought that was the same as a r:r but the reciprocal of your definition. So the R multiple is what I should be calling it from now on, not the reward to risk ratio.
What are R Multiples?
R multiples are the way that helps in deciding the initial level of risk for trade in terms of risk or reward. For example, if you have 40 pips, stop loss in the forex market, and have the risk of $5 pips; if the situations turn opposite you, you will lose $200. This $200 is the initial loss, also known as 1R risk. R stands for risk here.
Going further, we can define the risk by using R, like 1R, 2R, etc., instead of pips or dollars. I.e., you are taking a trade worth $50 gain and $25 loss, you would make double the risk you take, which would be 2R. But if you lose $25, you would have a loss of 1R.
Traders implementing R multiples generally talk in this manner, “I earned 3R yesterday and lost 1R today.” “This trade has the potential of 4R.”
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sometimes in spite of having the most powerful analyzing money management, the result of trading can be useless, this is a real attitude of this marketplace.
school is really good but besides this it is more important to trade in a demo account as for practice , otherwise the knowledge of school can be useless.
this is a very good combo package for the beginners level but the main problem is as a newcomer it is really difficult to keep patience in demo account , this is the reality
the perfect money management is always very supportive to avoid unfortunate risk and losses , this is a perfect professionalism.
Now it has been explained go back to the Education seciton and re-read it and really drill it home as understand this key concept will help save accounts down the line.
Exactly! I think this is where most new traders lack. Courses are there to guide us. Unless we don’t practice what we read, we will never learn trading. We need to backtest and see what could work or not.
Money management il say it again is 
to forex success .
No matter how good your strategy is you will experience variances and the inevitable psychological hit we feel with loses