Free trading tool
Risk reward calculator:your stop, your target.
Enter where you are getting in and where you are wrong, choose a reward-to-risk ratio, and this places the take profit, prices both outcomes in dollars and shows the win rate the trade needs to break even.
Take-profit price
1.08400
40 pips from entry
Stop distance
20 pips
Risk / reward in dollars
$200.00 / $400.00
Before commission
Break-even win rate
33.3%
Win more often than this at 1:2 and the trades are net positive before costs
How it works
The formula behindthe numbers.
The stop sets the risk. The ratio sets how far away the target is. The two together set the win rate the trade needs.
Stop distance = |entry − stop loss|. Take profit = entry + stop distance × R for a long, entry − stop distance × R for a short. Break-even win rate = 1 ÷ (1 + R): at that win rate the winners exactly pay for the losers, before costs.
Worked example. Long 1 lot of EUR/USD at 1.08000 with a stop at 1.07800 is a 20-pip stop, or $200 at risk. At 1:2 the target sits 40 pips away at 1.08400, worth $400, and the trade breaks even winning 33.3% of the time. Short 0.2 lots of gold at 3,500 with a stop at 3,510 risks $200; at 1:1.5 the target is 3485.00 for $300.
A ratio says what a trade pays if it works. It says nothing about how often it works - that part is the strategy, and no calculator supplies it.
Reference
Break-even win rateby ratio.
The win rate each reward-to-risk ratio needs just to break even, before spread and commission.
| Reward to risk | Break-even win rate | 20-pip stop: target distance |
|---|---|---|
| 1:0.5 | 66.7% | 10 pips |
| 1:1 | 50.0% | 20 pips |
| 1:1.5 | 40.0% | 30 pips |
| 1:2 | 33.3% | 40 pips |
| 1:3 | 25.0% | 60 pips |
| 1:4 | 20.0% | 80 pips |
The rules behind the maths
Where this meetsa GFN account.
The dollars at risk are what a stopped-out trade takes from the day. On a $100,000 1 Step the daily loss limit is $5,000, so a $200 stop uses 4% of it - and commission counts too.
Daily Loss Limit Rules
What is the daily loss limit?
Commission and Costs
What does trading cost?
Margin and Lot Size Rules
Is there a maximum lot size?
$100,000 1 Step account
The daily loss limit and drawdown, in dollars.
Forex profit calculator
The dollar result of any entry and exit.
Risk of ruin calculator
What a win rate and ratio do over many trades.
Common questions
Risk and reward,answered.
Ready when you are
Your capital stays yours.The risk is ours.
One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes.
No subscriptions or hidden fees
Payouts every 14 days
$400,000 max total allocation