GOLDMAN SACHS

Asymmetric Risk Reward, then, can be expressed as either the potential risk vs. reward of an investment position or trade or the actual outcome of a position taken. The potential asymmetric risk vs. reward of an investment position or trade is an asymmetric risk reward setup. When we speak of asymmetric risk reward outcome of a closed position that has been bought and sold, we are speaking more of asymmetric payoff.

Also known as: asymmetric risk reward