Risk and Reward Forex Calculator

The risk and reward calculator will help you to calculate the position's best targets and their respective reward-to-risk ratios based on the Fibonacci retracements from the local peak and bottom. It's a powerful tool to determine the potential risks before entering any positions.

Bullish or Bearish?

Bullish and bearish wave in risk and reward calculation

The price needs to be inside the wave for you to use this calculator properly. Here are the two variants of the wave you can work with — bullish and bearish.

The current price is C; A is the beginning of the wave (bottom for bullish and peak for bearish); B is the local maximum (for bullish wave) or minimum (for bearish wave).

Fibonacci retracements (0.382 and 0.618) are calculated to form the entry, target and stop-loss levels. It's better to enter positions only if the current price (C) is close to 0.382 Fibonacci level.

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Results   Risk Reward Ratio
0.382 Retracement
0.618 Retracement
1st Target
2nd Target
3rd Target

Attention! It's not recommended to enter a trade if your reward-to-risk ratio is less than 2.

Our position size calculator may also come to use for you as it allows you to calculate the optimal position size depending on the risk you tolerate, the stop-loss level, and the total size of your account.

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Forex trading bears intrinsic risks of loss. You must understand that Forex trading, while potentially profitable, can make you lose your money. Never trade with the money that you cannot afford to lose! Trading with leverage can wipe your account even faster.

CFDs are leveraged products and as such loses may be more than the initial invested capital. Trading in CFDs carry a high level of risk thus may not be appropriate for all investors.