$ETH **Reward-Risk Ratio in Binance Trading**

The reward-risk ratio is a key metric in trading that compares potential profit to potential loss. On Binance, traders use this ratio to assess whether a trade is worth taking. A common ratio is 2:1, meaning the potential reward is twice the potential risk.

To calculate it, divide the expected profit (target price minus entry price) by the possible loss (entry price minus stop-loss price). For example, if you buy a crypto at $100 with a target of $120 and a stop-loss at $90, the reward-risk ratio is (120-100)/(100-90) = 2:1.

A higher ratio improves profitability over time, even with a lower win rate. Binance traders should set realistic targets and strict stop-losses to maintain discipline. However, market volatility and liquidity can impact execution.

Using tools like limit orders and trailing stop-losses on Binance can help optimize the reward-risk ratio. Always analyze market trends and manage risk to succeed in crypto trading.