Risk-to-Reward Ratio

Also known as: risk reward, reward to risk, r:r

The risk-to-reward ratio compares potential loss to potential gain — risk ₹1 to make ₹2 is 2:1. Combined with win rate it determines expectancy. With strong reward-to-risk (2:1+) you can be wrong more than half the time and still profit, which is why pros chase fat payoffs rather than a high win rate.