Trading guide · R multiple trading
What Is R in Trading? R-Multiple Explained
Understand R-multiples, initial risk, and how traders compare results consistently.
R is the amount you agreed to risk before taking a trade. It turns different account sizes and dollar outcomes into one comparable language.
What to remember
- R-multiple = trade result ÷ initial risk.
- -1R means the full planned risk was lost.
- +3R means the result was three times the initial risk.
Measure a series of trades in R so money does not become the only scoreboard.
Trading is probabilistic. No setup guarantees a result, and this guide is educational rather than financial advice. Build a process, define risk before entry, and review your decisions honestly.
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