Understanding Risk-Reward Ratio in CFD Trading

Hey everyone, wanted to quickly touch on risk-reward ratios, as it's fundamental to responsible CFD trading. Essentially, it's about comparing the potential profit of a trade to its potential loss. If I'm looking at a $USDCAD short, for example, and my stop loss is set where I'd lose 50 pips, but my take profit is at 150 pips, that's a 1:3 risk-reward. It doesn't guarantee a win, but over a series of trades, consistently taking setups with a favorable ratio like this is key to long-term profitability, even if your win rate isn't perfect.