R is risk unit per trade.
if R is 1000rs, then each time you take a trade, If you lose 1R, then you lose 1000 rs. 2R you lose 2000 rs.
and the cost of taking each trade comes to around 0.16R
whether you profit or loss, you are setback by 160 rs, incase 1000rs as R value.
this is for equity cash market.
so, to make a living in the market, you need to mind the commissions. What you see on screen is mtm profit, and depends on how many trade you took to arrive. That’s one of the reason, many people see profit on screen, but as contract note arrives, you are left with a peanut or a loss. The more trade you take, buy-sell, sell-buy, the more -0.16R.
As long as we have 3 of them, it’s all good. 4th one is the one that we should consciously avoid and that’s it. The chances of blowing the account up decreases considerably.