RISK-REWARD RATIO
Risk-Reward Ratio compares the monetary risk to potential reward for a trade, transaction, or portfolio. It evaluates profitability relative to risk, helping traders optimize decision-making and strategy development.
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Category – Take Profit
Take profit is an order placed to close a trade once an asset reaches a predetermined price, securing profits at a specific level. In trading, take profit orders help traders lock in gains before market conditions reverse. It is a risk management tool that allows traders to automate profit-taking and avoid emotional decision-making. Traders use take profit in conjunction with stop loss orders to set clear exit points, ensuring disciplined and systematic trading while managing potential market volatility.
