---
title: "Risk-reward ratio - Meaning & GFN's Figure - Get Funded Now"
description: "The size of a trade's target relative to its stop, expressed as a ratio. A 2:1 trade risks one unit to make two, which sets the win rate the strategy…"
url: "https://getfundednow.com/glossary/risk-reward-ratio"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/risk-reward-ratio"
  pt-BR: "https://getfundednow.com/pt-br/glossary/risk-reward-ratio"
  fr: "https://getfundednow.com/fr/glossary/risk-reward-ratio"
  it: "https://getfundednow.com/it/glossary/risk-reward-ratio"
  de: "https://getfundednow.com/de/glossary/risk-reward-ratio"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Strategy and performance

# Risk-reward ratio

The size of a trade's target relative to its stop, expressed as a ratio. A 2:1 trade risks one unit to make two, which sets the win rate the strategy needs in order to be profitable.

Also called: Reward-to-risk · R:R

GFN’s figure

Against a GFN 10% 1 Step target, 0.5% risk per trade at 2:1 needs a net of ten winning trades to clear $10,000 on a $100,000 account - before $3.50 per side, $7 per lot round turn.

In detail

## Risk-reward ratio, explained

Ratio and win rate are two halves of one number. At 2:1 a strategy needs to win more than a third of the time to break even; at 1:1 it needs more than half; at 1:3 it needs more than three quarters.

A ratio quoted from planned levels is not the ratio achieved. Slippage, commission and partial exits all push the realised figure below the planned one, so the plan needs margin.

[Rules handbook](https://getfundednow.com/rules) · [More strategy and performance](https://getfundednow.com/glossary/category/strategy)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [R-multiple](https://getfundednow.com/glossary/r-multiple) - A trade's result expressed in units of its initial risk. Risking $200 and making $600 is +3R; hitting the stop is -1R. It makes results comparable across account sizes and position sizes.
- [Win rate](https://getfundednow.com/glossary/win-rate) - The proportion of trades that finish profitable. On its own it says nothing useful - a 90% win rate with one outsized loss and a 35% win rate with large winners can produce the same result.
- [Expectancy](https://getfundednow.com/glossary/expectancy) - The average result of a trade over a large sample, combining win rate and average win and loss. A positive expectancy is necessary for a strategy to work and not sufficient for it to pass an evaluation.
- [Take profit](https://getfundednow.com/glossary/take-profit) - A resting order that closes a position at a target price. Paired with a stop loss it fixes the reward-to-risk ratio of a trade at the moment it is placed, before the outcome is known.
- [Profit factor](https://getfundednow.com/glossary/profit-factor) - Gross profit divided by gross loss across a sample of trades. A profit factor above 1 means the strategy made money; below 1 means it lost, whatever the win rate suggests.

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Source: https://getfundednow.com/glossary/risk-reward-ratio
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