Risk
What is Break-even win rate?
By the verify.trading team · Last reviewed · How we write
The break-even win rate is the share of trades you must win to cover your losses at a given risk to reward ratio. It is 1 / (1 + ratio), before costs.
Key points
- 1:1 needs 50%, 1:2 needs 33%, 1:3 needs 25% before costs.
- Costs raise the real figure.
Break-even win rate explained
At 1:1 you need to win half your trades. At 1:2 you need about a third. At 1:3 you need a quarter. Spreads and commissions push all of these up.
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