Profitability ratios are an important indicator of a Forex trader’s success. This type of ratio measures how efficient a trader is able to make money based on the amount of transactions they made during a certain amount of time. These ratios can provide insight into the strength of a trader’s trading strategy as well as the amount of capital they have available to trade. Popular profitability ratios include the risk/reward ratio, winning rate, and expectancy. Knowing these ratios can help a trader to identify and improve their trading approach.