What the ratio means
A 1:2 risk/reward ratio means the modeled reward distance is twice the modeled risk distance. The ratio describes geometry, not the probability that a target will be reached.
Use valid directional prices
Long setups require stop below entry and target above entry. Short setups require the reverse. The calculator validates both cases and can estimate monetary loss and profit when quantity is provided.
Ratio is not a guarantee
Execution, fees, slippage and changing volatility can alter the result. Use the ratio alongside position sizing and current drawdown capacity rather than as a trading signal.
Related tools and guides
Frequently asked questions
Does this tool provide financial advice?
No. It provides information and mathematical calculations only. It is not financial, investment or trading advice.
Are results guaranteed?
No. Results depend on the inputs and omit factors such as fees, slippage, gaps and changing market conditions.
Do blockfunded rules always stay the same?
Use the official rules and terms applicable to the specific account. Presets are loaded from current configuration when available, while historical accounts may use an earlier captured ruleset.
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