Crypto Futures Risk/Reward Calculator
Compare the distance from entry to stop with the distance from entry to target. This calculator does not predict whether either price will be reached.
How the calculation works
Risk distance is the absolute difference between entry and stop. Reward distance is the absolute difference between target and entry. Reward-to-risk equals reward distance divided by risk distance. A 100 entry, 95 stop and 110 target produces 5 units of price risk and 10 units of potential price reward, or 2:1.
What break-even win rate means
Ignoring fees, slippage and funding, the theoretical break-even win rate is risk divided by risk plus reward. A 2:1 reward-to-risk setup therefore has a theoretical break-even win rate of about 33.33%. Real trading costs raise the required result.
Important limitations
The ratio does not measure the probability of success. Leverage does not improve the underlying reward-to-risk relationship and can magnify losses. Check contract specifications, fees, funding, liquidity and your own risk limits before making a decision.
Read the risk/reward guide → · Position sizing calculator → · Scanner methodology →