Forex glossary

R-multiple in Forex

A clear definition of R-multiple, with practical context for reading markets and making better trading decisions.

Level 8 · Build Your Trading PlaybookRisk management

Definition

A trade result expressed as a multiple of the amount initially risked. It lets trades of different sizes be compared honestly.

Practical forex example

If you risk $10 and make $20, the result is +2R; losing the planned $10 is -1R.

Why R-multiple matters

Understanding R-multiple helps traders interpret market information, plan decisions, and manage risk with more context.

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