Sep 21 2020 9 mins 10
The ratio of initial credit to BPR is a good way to approximate the initial risk-to-reward ratio of a trade. Trades with higher credit-to-BPR are generally more favorable, as this trade has a higher initial profit potential for the given amount of risk. Tom and Tony take a look at this ratio in different IVR (IV Rank) environments to see how the risk-adjusted reward potential changes with IVR.
