Risk/reward Ratio In UK Binary Options Trading - Binary Options Daily
Put simply, a ratio is used by an investor to assess expected returns of an investment in comparison to the extent of risk undertaken to earn those returns. Calculating the ratio is very simple. It is calculated by dividing the amount of money an investor expects to lose when the price of the asset moves unfavorably (the risk) by the amount of money (profit) the trader anticipates to have made on closing the trading position.
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