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risk to reward ratio calculation
user
if you plan to take profit at $1.00 then your profit will be $40. then, if you set your stop at $0.88 then your loss if you get stopped will be $20.  so your reward : risk = 2:1.  note, that this does not take into account brokerage in and out and any slippage from the price gapping past your stop loss.
assistant