Glossary › R multiple
Trading glossary · risk
R multiple
A way to measure a trade's result in units of what you risked: winning twice your risk is 2R.
The fuller meaning
A trade's result divided by its initial risk (entry-to-stop distance), so 1R is the planned loss. Measuring in R makes trades comparable across markets and sizes; expectancy, average win and loss and the breakeven win rate are usually stated in R.
R multiple, also called R-multiple.
Related words
1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve