Risk-Reward: Entry $200, Stop $190, Target $230
A $200 entry with a $190 stop and $230 target produces a 3:1 risk-reward ratio — generally considered a good trade.
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.
Check whether this trade setup passes the 2:1 or 3:1 risk-reward test with a $200 entry, $190 stop-loss, and $230 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.