Which R/R ratio you are using in trading?
If you want to open the position in the FX market, you have to take a risk, same as you must have the potential target, or profit level. That’s why, the Risk/Reward ratio is one of the most important things in FX trading. Which one to use? There is an unwritten rule about this and certainly the most common ratio that you’ve read or heard about is 1:3. That means that you are risking 1 usd and want’s to earn 3. On my oppinion, that RR is minimum to use and in my trading, sometimes I personaly use even 1:10! Each trader have its own tactics and this is not something you should hold on by the book. Most of the times, RR depens on the situation in the market, do you have short or long term position and much more. I would say, adjust your RR buy the current situation and don’t hesitate to change it during the trade. What most important is, lower your risk and maximize your profit, not the other way around! Happy trading. 😉