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Stop Loss Calculator
Calculate optimal stop loss levels to manage risk and protect your capital from significant losses.
Position Parameters
Risk Assessment
Position Breakdown
Risk Comparison by Percentage
Profit & Loss Visualization
Position Details
Risk Management
Stop Loss Strategies
Conservative (1-2%)
Suitable for beginners and risk-averse investors. Preserves capital but may result in frequent stops.
Moderate (2-5%)
Balanced approach between risk and reward. Most professional traders use this range.
Aggressive (5-10%)
Higher risk tolerance. Allows for more price volatility but increases potential losses.
How Stop Loss is Calculated
This calculator determines the exact price at which you should exit a trade to keep your loss within a pre-decided risk percentage (or fixed risk amount) of your position value, for both long and short positions.
Risk Amount = Entry Price × Quantity × Risk Percentage ÷ 100 (or entered directly)
Risk per Share = Risk Amount ÷ Quantity
Stop Loss Price (Long) = Entry Price − Risk per Share
Stop Loss Price (Short) = Entry Price + Risk per Share
For a long position with entry ₹1,000, 100 shares and 2% risk: Risk Amount = ₹2,000, Risk per Share = ₹20, so Stop Loss Price = ₹1,000 − ₹20 = ₹980.
Important Notes:
- • Stop loss orders help limit losses but don't guarantee execution at the exact price
- • Consider market gaps, liquidity, and volatility when setting stop loss levels
- • Never risk more than you can afford to lose on a single trade
- • Trailing stop losses can help lock in profits as prices move in your favor
- • Review and adjust stop loss levels based on changing market conditions
- • Consider using stop loss orders in combination with position sizing strategies
- • This calculator is for educational purposes only and not financial advice
Stop Loss Calculator FAQs
What is a stop loss and why should I use one?
A stop loss is a predetermined price level at which you exit a losing trade to cap your loss before it grows larger. It removes emotion from the decision and enforces discipline, protecting your trading capital from significant drawdowns during adverse price moves.
How is the stop loss price calculated from risk percentage?
First, the risk amount is calculated as a percentage of your total position value (entry price × quantity). This risk amount is then divided by the quantity to get the risk per share, which is subtracted from the entry price for a long position (or added to the entry price for a short position) to arrive at the stop loss price.
What is the difference between stop loss for long and short positions?
For a long position (you bought expecting the price to rise), the stop loss is set below your entry price — you exit if the price falls too much. For a short position (you sold expecting the price to fall), the stop loss is set above your entry price — you exit if the price rises too much against you.
What risk percentage should I use for my stop loss?
Most professional traders risk 1-2% of their capital per trade (conservative to moderate), while 3-5% is considered aggressive and above 5% is very high risk. The right percentage depends on your risk tolerance, trading strategy and how many trades you take, but consistently risking too much per trade can wipe out capital quickly during a losing streak.
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