Is this trade worth the risk?
Put in your entry, stop-loss and target. See what you stand to lose, what you stand to make — and how often you would need to be right just to break even.
- Break-even win rate
- 33.3%
- Ratio
- 2 : 1
- Loss if stopped
- −Rs. 2,000
- Gain at target
- +Rs. 4,000
Figures are per trade, before broker commission and other charges, which raise the win rate you need.
Why the ratio beats being right.
Your risk is the gap from entry down to your stop. Your reward is the gap from entry up to your target. Divide reward by risk and you have the ratio.
The ratio decides how often you need to win. At 1:2 you break even winning about one trade in three. At 1:0.5 you would need to win two trades in three just to stand still — a much harder game.
Set the stop where the idea is proven wrong and the target at a level the price can realistically reach. If the ratio then looks poor, the answer is usually to skip the trade, not to move the stop.
| Ratio | Break-even win rate |
|---|---|
| 1 : 1 | 50.0% |
| 1 : 1.5 | 40.0% |
| 1 : 2 | 33.3% |
| 1 : 3 | 25.0% |
| 1 : 4 | 20.0% |
Plan the exit before the entry.
Enter your entry price
Type the price you plan to buy at, or tap one of the real NEPSE prices to start from the latest session.
Set your stop-loss
Enter the price below entry where your trade idea is proven wrong. Entry minus stop is your risk per share.
Set your target
Enter a realistic exit above entry, such as just below a recent high. Target minus entry is your reward per share.
Read the ratio and break-even
The calculator shows reward ÷ risk and the share of trades you must win to break even. Skip trades where the reward is smaller than the risk.
Good plans, written down.
- Base the target on the chart — a recent high or resistance — not on the profit you would like.
- Never widen a stop after entering just to improve the ratio on paper.
- Check a share's day and 52-week range on its page — search it from NEPSE today — to see whether your target is realistic.
- Size the trade next with the position size calculator.
Straight answers.
How do you calculate the risk/reward ratio?
Risk = entry − stop-loss. Reward = target − entry. The ratio is reward ÷ risk. Buying at Rs. 500 with a stop at Rs. 480 and a target of Rs. 540 risks Rs. 20 to make Rs. 40 — a 1:2 ratio.
What is a good risk/reward ratio?
Many traders look for at least 1:2 — risking one rupee to make two. It is not a law: a strategy that wins very often can work at a lower ratio. The break-even win rate tells you what you need.
What is the break-even win rate?
It is the share of trades you must win to neither make nor lose money: 1 ÷ (1 + ratio). At 1:1 you need 50%; at 1:2 about 33%; at 1:3 about 25% — before costs.
Do fees change the result?
Yes. Broker commission and other charges come out of every buy and sell, so real results need a slightly higher win rate than the calculator shows. The calculator itself ignores costs to keep the maths clear.
Can I use it for short selling?
It is set up for buying (long) trades, which is how most NEPSE investors trade: the stop sits below entry and the target above it.
Test your setups risk-free.
Plan entries, stops and targets in the ShareRocketPro app's 24/7 practice market with Rs. 10,000 practice money — and see how your plans actually play out.