Risk of Ruin vs Risk Per Trade

Quick comparison to help you distinguish these two crypto terms.

Risk of Ruin
advanced
risk

The statistical probability that a trader's account will decline to a level so low it becomes non-viable for continued trading, calculated from win rate, reward-to-risk ratio, and risk per trade percentage.

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Risk Per Trade
intermediate
risk

The predetermined maximum percentage of total account balance a trader is willing to lose on any single trade, defined before entry and used to drive position size calculations.

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