Risk-Reward Ratio: Entry $500, Stop $480, Target $600
A $500 entry with a $480 stop and $600 target gives a 5:1 risk-reward ratio — an excellent trade setup.
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.
A 5:1 risk-reward ratio is exceptional — see whether this $500 entry with a $480 stop and $600 target lives up to the math.
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.