Asymmetric Reward to Risk is the amount of reward, gain, or profit earned relative to the potential risk of loss.

A positive asymmetric reward to risk occurs when the potential or realized reward is greater than the potential or realized loss.

When we speak of Asymmetrical Reward to Risk, we typically mean it is a positive one. But, an asymmetric reward/risk can also be negative.

Asymmetric Reward is the reward an investor may achieve when the gain realized from the move of an underlying asset in one direction is significantly different from the loss incurred from its move in the opposite direction.

Asymmetric Risk is the risk an investor faces when the gain realized from the move of an underlying asset in one direction is significantly different from the loss incurred from its move in the opposite direction.

For information about the application of asymmetric reward/risk visit: ASYMMETRY®