Trading glossary · risk

reward

How much you hope to win if your trade reaches its goal.

The fuller meaning

The planned gain from entry to target, compared with the risk from entry to stop. Reward must be realistic, anchored to measured moves or the next level, and fees and spread shrink it; skip trades whose target is closer than the stop.

reward.

Related words

1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve