Risk Reward Calculator
Calculate your trading risk, reward and risk-reward ratio instantly before entering any trade.
Calculation Result
| Total Risk | ₹ 0 |
|---|---|
| Total Reward | ₹ 0 |
| Risk Reward Ratio | 1 : 0 |
| Risk Percentage | 0 % |
What is Risk Reward Ratio?
Risk reward ratio is one of the most important concepts in trading and investing. It helps traders understand how much they are risking compared to the potential reward.
Professional traders always use proper risk management before taking trades in Nifty, BankNifty and stock market trading.
Why Risk Management is Important?
- Protects trading capital
- Reduces emotional trading
- Helps maintain consistency
- Improves long-term profitability
- Prevents large trading losses
Risk Reward Formula
Risk = Entry Price − Stop Loss
Reward = Target Price − Entry Price
Risk Reward Ratio = Reward ÷ Risk
Example of Risk Reward Ratio
Suppose you buy Nifty at 25000, keep stop loss at 24950, and target at 25150.
- Risk = 50 points
- Reward = 150 points
- Risk Reward Ratio = 1:3
Best Risk Reward Ratio for Trading
Most professional traders prefer minimum 1:2 or 1:3 risk reward ratio for better trading performance.
Higher reward compared to risk helps traders remain profitable even if some trades fail.
Frequently Asked Questions
What is a good risk reward ratio?
Most traders consider 1:2 or 1:3 as a good risk reward ratio.
Is this calculator free?
Yes, this trading risk reward calculator is completely free to use.
Can beginners use this calculator?
Yes, beginners can easily calculate trading risk and reward using this tool.