R-multiple (risk-reward)
Also called R, risk reward ratio, RR. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
R-multiple: R is the amount you risk on a trade. A result of +2R means you made twice what you risked; −1R means you lost the planned amount. Measuring in R makes trades comparable regardless of lot size.
R-multiple on a gold chart
You buy gold at $4,110 with a stop at $4,100, risking $10 per ounce. If you exit at $4,130, you made $20 per ounce: +2R. On 0.10 lot that's $200 on $100 risk.
How traders use it
Traders plan trades in R and judge their system by average R per trade. Every trade on our public record is shown in R.
Common mistake
Moving the stop further away to 'give it room' without cutting the lot size. That changes what 1R costs.
Questions
What does r-multiple mean in trading?
R is the amount you risk on a trade. A result of +2R means you made twice what you risked; −1R means you lost the planned amount. Measuring in R makes trades comparable regardless of lot size.
How is r-multiple used on gold (XAUUSD)?
Traders plan trades in R and judge their system by average R per trade. Every trade on our public record is shown in R.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
Related terms
Free daily gold key levels every weekday at 05:30 GMT, and every Tradedge Pulse trade on the public record.