About Risk/Reward Ratio Calculator
This educational tool demonstrates fundamental risk analysis concepts through price difference calculations. Designed for theoretical strategy discussions in trading/investment scenarios, without any connection to real financial advice or gambling activities.

How It Works

1. Input entry price position
2. Enter stop-loss price level
3. Set target profit price
4. Calculates risk-to-reward ratio
5. Shows numerical ratio (Reward:Risk)

Legal Disclaimer
By using this calculator, you agree:

1. Purely academic/educational purpose
2. No financial/trading advice provided
3. Prohibited for investment decisions
4. Users must be 18+ years old
5. Does NOT predict market outcomes
6. We oppose speculative gambling
7. Results are mathematical models
8. Compliance with all financial regulations

Calculation Methodology
Core Formula:
Risk = |Entry Price – Stop Loss|
Reward = |Target Price – Entry Price|
RR Ratio = Reward ÷ Risk

Educational Value

• Teaches risk management basics
• Demonstrates position sizing concepts
• Shows quantitative trade analysis
• Illustrates profit potential assessment
• Explains strategic exit planning

Strict Prohibitions
ANY association with:

• Real-money trading decisions
• Gambling/betting strategies
• Financial portfolio management
• Underage usage
• Professional advisory services

Technical Specifications

• Handles any numeric price inputs
• Absolute value calculations
• Mobile-responsive design
• Instant results
• No data collection/storage

Analysis Limits

• Ignores market volatility
• No transaction cost consideration
• Static price assumptions
• Single-position focus
• No timeframe analysis

Example Calculation:
Entry: 100∣StopLoss:100∣StopLoss:95 | Target: 115Risk=115Risk=5 | Reward = $15
RR Ratio = 3:1

Strategic Implications:

• 1:1 Ratio = Break-even at 50% win rate
• 2:1 Ratio = Profitable at 33% win rate
• 3:1 Ratio = Common professional target

Mathematical Note:
While useful, RRR should always be combined with:

• Probability analysis
• Market context
• Portfolio balance
• Risk capital limits
• Continuous monitoring