Risk/reward calculator
How much a trade can make for each unit it can lose, and how often trades like it must win to break even.
Risk to reward
1 : 2
StopEntryTarget
- Risk 20 pips
- -1R
- Reward 40 pips
- +2R
- Break-even win rate
- 33.3%
Trades like this break even when 33.3% of them win. Win more often than that and they come out ahead, before costs.
Estimates before costs: spread, commission and overnight swap are not included. Your broker's own figures always win.
Words used here
- Risk/reward ratio
- Distance to the target divided by distance to the stop. 1 : 2 risks 1 to make 2.
- Win rate
- The share of trades that end in profit. A bigger ratio needs a lower win rate to break even.
- R
- One unit of risk: the loss at your stop. A trade that makes twice its risk is +2R.
Questions
Questions traders ask
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With your own trades
The same numbers, next to your open trades
Link your MT5 or MT4 account and FxMind shows the risk of each open trade, warns before high-impact news and keeps your journal. The free plan is read-only and costs nothing.