Risk-Reward Ratios in Signal Trading: Optimal Ratios for Different Markets
Most forex traders avoid opening positions with risk-reward ratios lower than 1:1, with many professionals aiming for ratios between 1:2 and 1:3 for standard trading setups. For major currency pairs with lower volatility, stricter ratios of 1:3 or higher may be necessary to compensate for smaller price movements.
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