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Forex Journal Team

June 8, 20261 min read

Risk-Reward Ratio Explained: Why 1:2 Is the Minimum

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Understanding Risk-Reward Ratio

Risking $100 to make $200 = 1:2 RR. Risking $100 to make $50 = 2:1 RR (bad).

Why 1:2 Is the Minimum

With 1:2 RR, you only need 34% win rate to break even. With 1:1, you need 50%. With 2:1, you need 67%.

How to Achieve It

  • Place stops behind structure
  • Set targets at support/resistance
  • Don't widen stops after entry
  • If you can't get 1:2, skip the trade
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