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Understanding Risk-Reward for $XOP
When analyzing a potential trade like $XOP at its current 189.54, consider your risk-reward ratio: if you anticipate a move to 195 with a stop at 187, you're risking 2.54 for a potential 5.46 gain, a favorable ~1:2.1 ratio.
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That's a decent paper ratio, but it doesn't factor in market conditions or why XOP would actually hit 195. What's your catalyst for that move?