Back to glossary
R-Multiple
Risk ManagementA trade result expressed as a multiple of the initial risk (R). If you risk $100 and make $300, that is a 3R trade. Allows comparison of trades regardless of position size.
Related Terms
Risk-Reward Ratio
The ratio of potential loss to potential gain on a trade.
Position Sizing
Determining how many shares or contracts to trade based on account size and risk per trade.
Expectancy
A measure of the average amount you can expect to win or lose per trade: (Win Rate x Avg Win) - (Loss Rate x Avg Loss).