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Risk-Reward Ratio for Forex — How to Calculate R:R in Pips

Last updated: April 20265 min readCalculator Tools

Forex R:R is calculated in pips, not dollars. The ratio is the same regardless of lot size - 50 pips risk to 100 pips reward is 2:1 whether you trade micro lots or standard lots. The pip-based ratio tells you if the setup is worth taking. The lot size determines how much you actually risk in dollars.

Calculate R:R for any forex pair or setup.

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Forex R:R Examples

PairEntryStop LossTargetSL PipsTP PipsR:R
EUR/USD1.08501.08001.0950501002.0:1
EUR/USD1.08501.08201.094030903.0:1
GBP/USD1.26501.26001.2800501503.0:1
USD/JPY155.50156.00154.00501503.0:1
XAU/USD2,3502,3452,370502004.0:1
EUR/USD1.08501.08301.087020201.0:1

The last row shows a 1:1 setup - avoid unless your strategy has a proven win rate above 55% on this pair and timeframe.

R:R by Forex Trading Style

StyleTypical SL (Pips)Typical TP (Pips)R:RWin Rate Needed
M1-M5 scalping5-1510-201.5:140%
M15-H1 day trading15-4030-1202:1 to 3:133%
H4-D1 swing trading40-100120-4003:1 to 4:125%
Weekly position trading100-300400-15004:1 to 5:120%

Common Forex R:R Mistakes

Pip-Based R:R With Dollar Risk

$10,000 account, 1% risk ($100), trading EUR/USD:

Stop (Pips)Target (Pips)R:RLot SizeDollar RiskDollar Reward
30602:10.033 lots$100$200
30903:10.033 lots$100$300
501002:10.020 lots$100$200
501503:10.020 lots$100$300
20603:10.050 lots$100$300

Notice: the dollar risk is always $100 (1% of account) regardless of stop distance. The lot size adjusts to keep dollar risk constant. The R:R determines how much you stand to gain for that fixed $100 risk.

Calculate Your Forex R:R

Check R:R on every forex trade before you enter.

Open Risk Reward Calculator
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