Risk-Reward Ratio: Entry $100, Stop $98, Target $104 (1:1)
A $100 entry with a $98 stop and $104 target results in a 1:1 risk-reward ratio, generally the minimum acceptable.
How to use this tool
- Enter your planned entry price.
- Enter your stop-loss price (below entry for a long, above for a short).
- Enter your take-profit target price.
- Read the risk-reward ratio — aim for 1:2 or higher.
Is a 1:1 risk-reward ratio worth trading? This calculator shows the breakeven math for a $100 entry with a $2 stop and $4 profit target.
Frequently asked questions
- What is a good risk-reward ratio?
- Most traders target a minimum of 1:2 (risk 1 to potentially make 2). A 1:3 ratio is excellent — it means you only need to win 25% of trades to break even.
- Does the ratio work for short trades?
- Yes — for shorts, your stop is above entry and your target is below. The calculator uses absolute differences, so it works identically for long and short positions.