
Risk-Reward Ratios in Trading

Interactive Video
•
Mathematics, Business
•
9th - 12th Grade
•
Hard

Lucas Foster
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the risk-reward ratio if Lauren risks $400 to potentially gain $2000?
1:5
1:3
1:2
1:4
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If Tegan's trading system has a win rate of 15% and a risk-reward ratio of 1:4, what is her expectancy per $1000 risked?
$150 gain
$250 loss
$850 loss
$600 gain
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the expectancy of a trading system with a win rate of 40% and a risk-reward ratio of 1:2?
Negative 20 cents per dollar
Zero expectancy
Positive 20 cents per dollar
Positive 40 cents per dollar
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
For a trading system with a risk-reward ratio of 1:2, what is the minimum win rate needed to break even?
66.7%
50%
33.3%
25%
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a trading system has a risk-reward ratio of 1:1, what win rate is required to break even?
33.3%
25%
75%
50%
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following best describes a trading system with a high reward but low win rate?
Buying options
Selling options
Swing trading
Day trading
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the risk-reward ratio for Jared's call option trade if he risks $300 to potentially make $1500?
1:3
1:4
1:5
1:6
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