How the calculation works
For a long position, planned price risk is entry minus stop; planned price reward is target minus entry. For a short position, reverse those directions. Divide reward by risk to express the planned ratio as 1:R. Multiply each price distance by the effective quantity to estimate gross currency values before costs and execution differences.
Enter the effective quantity carefully
For equities, quantity may be the number of shares. For a contract quoted per unit, it is the number of lots multiplied by the units represented by each lot, with any contract-specific quotation multiplier accounted for. Check official specifications. This tool cannot infer a commodity quotation convention or a current lot size from a name.
A ratio does not supply the probability
An entry of 100, stop of 95 and target of 110 produces a planned 1:2 ratio. It does not tell you how often the target will be reached, whether the order will fill or whether a stop will execute at the planned price. The displayed break-even win rate is a simplified arithmetic threshold before costs, assuming fixed outcomes.
Use it alongside a journal
Record the inputs before placing a simulated order, then compare the plan with the recorded exit. If you move a stop or target, note the change instead of keeping the original attractive ratio. This calculator estimates neither margin nor taxes, and it cannot certify a suitable position size or a maximum real loss.
CLEAR ANSWERS
Questions & answers
Is a 1:2 ratio always a good trade?
No. A ratio alone does not describe the probability, execution quality, costs or suitability of an idea.
Does this calculate exchange margin?
No. It calculates planned price distances and gross values from your effective quantity.
Are my inputs sent to a server?
This calculator performs the arithmetic locally in your browser and does not submit its inputs.
Sources and further reading
Official information can change. Source links do not imply endorsement.