Risk tool 08
Risk and reward planner
Compare a trade thesis target with its invalidation point before entry.
Educational estimate
Planned risk$40.00
Planned reward$100.00
Reward / risk2.50:1
Break-even win rate28.57%
Use the venue preview as the final source for fees, margin, and estimated liquidation.
A favorable ratio does not make a trade probable. It only makes the proposed payoff structure explicit.
Read the full guideMethod and limits
Structure does not imply probability
The ratio compares planned loss with planned gain. It does not estimate the probability of either outcome, and it can be overstated when the stop is unlikely to fill at its trigger.12
Evaluate expected costs and the possibility of partial exits. A nominal two-to-one setup can be less favorable after slippage, funding, and fees.34
Source desk
Source 1 / U.S. Securities and Exchange Commission, Investor.gov / accessed 28 July 2026Types of ordersSource 2 / U.S. Commodity Futures Trading Commission / accessed 28 July 2026Futures market basics and risk guidanceSource 3 / U.S. Commodity Futures Trading Commission / accessed 28 July 2026Understand your contractual obligationsSource 4 / Novrinex / accessed 28 July 2026Calculator assumptions and educational methodology