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Risk Reward Ratio

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Risk Reward Ratio

Definition

The relationship between the probability of loss and profit.

This ratio is often used as a basis for trade selection or comparison.

Related Terms

Other terms related to 'Risk Reward Ratio' starting with the letter 'R'

Reverse Conversion or Reversal, Roll Over, Runners, Random Walk, Reversal

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Commodity Futures Glossary

Table of Contents

Trading commodity futures and options

Who trades in commodity futures and options and why?

Can futures and option trading meet my investment goals?

What to watch out for in Commodities Trading

What are commodity futures and option contracts?

How do I go about trading futures or option contracts?

What are my contractual obligations?

What is the role of the CFTC in protecting investors?

Commodity Futures Trading risk disclosure document

How does risk affect my futures and options returns?

Strategies for reducing commodity futures and options risk

Risk factor: Options vs. Futures

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