Risk/Reward Ratio vs Stop-Loss Order
Quick comparison to help you distinguish these two crypto terms.
Risk/Reward Ratio
beginner
strategy
A measurement comparing the potential loss on a trade if stopped out against the potential gain if the profit target is reached, used to evaluate whether a trade offers acceptable return relative to its risk.
Read full definitionStop-Loss Order
beginner
risk
An instruction that automatically sells a cryptocurrency when its price falls to a specified level, designed to limit the maximum loss a trader is willing to accept on a position.
Read full definition