FAQ Section | Frequently Asked Questions
Realized P/L refers to the finally booked profit or loss that results from closing a position. Only when it is realized does the result become a fixed component of the balance and is no longer dependent on the market.
Example / association: A position is closed with a profit of €1,200. → This amount is booked as Realized P/L and immediately increases the balance of the account.
Risk per trade refers to the maximum acceptable loss that a trader incurs on a single trade. It is usually defined as a percentage of equity and is a key parameter for limiting drawdowns and ensuring account stability.
Example / association: An account has an equity of €20,000. The trader limits his risk to 1% per trade. → The maximum permissible loss per trade is €200, regardless of position size or leverage.
The R multiple sets the actual profit or loss of a trade in relation to the previously defined risk (risk per trade). It allows a standardized evaluation of trades - regardless of account size or instrument.
Example / Association: A trade risks €100 (1R) and is closed with a profit of €300. → The result corresponds to +3R. A loss of €100 would correspond to -1R.
The risk/reward ratio describes the relationship between the potential profit and possible loss of a trade. It is defined before the trade is opened and is a measure of the efficiency of a trading idea, not of its probability of occurrence.
Example / association: A trade risks €200 with a profit target of €600. → The risk/reward ratio is 1:3. The trade can be profitable in the long term even with a low hit rate.
In real trading, concepts have an operational rather than a theoretical effect. Whether balance, equity or margin - every concept has direct consequences for scope for action, risk and possible intervention by the broker. Explanations of terms are therefore not an academic accessory, but an instrument for risk control. Those who misunderstand terms not only make poor decisions, but often systematically underestimate the actual exposure of their own account.
If you discover a technical term on the platform that is not immediately obvious in its meaning or is explicitly explained via the navigation elements, please let us know.