Risk Reward Calculator

Risk is the distance from your entry price to your stop loss. Reward is the distance from your entry price to your take profit. The ratio is reward divided by risk, shown as 1:x to two decimals. The break-even win rate, 1 / (1 + ratio), is the share of trades you would need to win to break even before costs. It excludes spread, commission and slippage, which can increase the win rate needed to break even.

• Both distances are in price, not pips. They are shown with two decimals, or with as many decimals as the most precise of the three prices you enter.
• A buy needs the stop below and the target above the entry. A sell needs the opposite.

A buy at 1.1000 with a stop loss at 1.0950 and a take profit at 1.1100 risks 0.0050 to make 0.0100. That is a ratio of 1:2.00 and a break-even win rate of 33.33%, before costs.

A sell at 1.1000 with a stop loss at 1.1050 and a take profit at 1.0850 risks 0.0050 to make 0.0150. That is a ratio of 1:3.00 and a break-even win rate of 25.00%, before costs. A buy at 1.1000 with the stop at 1.0950 and the target at 1.1050 risks and makes 0.0050, a ratio of 1:1.00 and a break-even win rate of 50.00%.

A higher ratio lowers the share of trades you need to win to break even, but only if the target is a price the market can realistically reach. The ratio describes the plan, not the chance that the trade works, and it does not include spread, commission or slippage.

Once your entry, stop loss and target are set, the Position Size Calculator shows how many units fit your risk budget for that stop loss.

Use digits 0 to 9 and a dot for decimals, for example 1250.50. A comma is accepted only to separate groups of three digits, as in 1,250.50. A number cannot start with 0 followed by a comma, so write 0.5, not 0,5 or 0,500. Spaces before or after the number are ignored. Spaces inside a number, signs, currency symbols and digits from other scripts, such as Urdu-script digits, are not accepted.