#RiskRewardRatio The Risk-Reward Ratio (RRR) is a key concept in trading and investing. It helps evaluate how much risk you're taking for a potential reward.

Formula:

\text{Risk-Reward Ratio} = \frac{\text{Potential Loss (Risk)}}{\text{Potential Profit (Reward)}}

Example:

If you risk $100 to potentially gain $300:

\text{RRR} = \frac{100}{300} = 1:3

This means you're risking $1 to make $3 — a generally favorable ratio.

Common Guidelines:

A **1: