← Glossary
R
R is the distance between your entry price and your stop, in dollars per share: R = |Entry − Stop|. Every other risk figure — dollar risk, position size, realized R — is expressed as a multiple of this one number, so a result of 2R means twice what you risked, regardless of the ticker or price level. A wider stop means a bigger R and a smaller position for the same dollar risk.
R = |Entry − Stop|This explains what r measures. It isn't investment advice — see the disclaimer.