Reward to risk
Technical analysisAlso called: Risk reward ratio
Potential profit divided by the amount risked on a trade.
In plain terms
At 4:1 you can be wrong three times out of four and still be ahead.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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