Risk / Reward Ratio

Also reward-to-risk ratio or R/R. Ratio of maximum possible profit and maximum possible loss (risk) of an option strategy or position.

See how to calculate risk-reward ratio in Excel.

The concept is also used outside options trading as the ratio of maximum possible profit and maximum possible loss (risk) of a trading strategy or potential trade.

By remaining on this website or using its content, you confirm that you have read and agree with the Terms of Use Agreement.

We are not liable for any damages resulting from using this website. Any information may be inaccurate or incomplete. See full Limitation of Liability.

Content may include affiliate links, which means we may earn commission if you buy on the linked website. See full Affiliate and Referral Disclosure.

We use cookies and similar technology to improve user experience and analyze traffic. See full Cookie Policy.

See also Privacy Policy on how we collect and handle user data.

© 2024 Macroption