Source: https://mochatrade.com/learn/glossary/expectancy

# Expectancy
URL: https://mochatrade.com/learn/glossary/expectancy
Last modified: 2026-10-17

Expectancy is the average result per trade: win rate times average win minus loss rate times average loss, usually counted in R, the amount risked. Positive is an edge, and it still means nothing without how often you can take the trade. [Module 5](https://mochatrade.com/learn) builds sizing on it, checked against [the ledger after each trade](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough).

## Related terms

- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
- Position sizing: https://mochatrade.com/learn/glossary/position-sizing
- Leverage in trading: https://mochatrade.com/learn/glossary/leverage-in-trading
- Margin trading: https://mochatrade.com/learn/glossary/margin-trading
- Limit order: https://mochatrade.com/learn/glossary/limit-order
- Isolated margin: https://mochatrade.com/learn/glossary/isolated-margin

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.