Risk management · Pro
R-multiple
What does R-multiple mean?
An R-multiple expresses a trade result relative to its original risk amount, called one R. It helps compare trades with different position sizes.
Example
If initial risk is $120, a $240 net gain is +2R and a $60 loss is −0.5R.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Keep the original risk reference consistent; moving a stop later should not rewrite the initial measurement.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.