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Stop Loss Calculator

If you trade crypto, forex, or stocks, the hardest question is often: “How much will I lose if the market reverses?” Our Stop Loss Calculator answers that quickly and precisely. Enter your entry price, position size (shares/lots/contracts), choose how much you want to risk (currency or %), and pick long or short — the tool returns the stop price that keeps your risk within limits.

Stop Loss Calculator


What Is a Stop Loss?

A stop loss is an automated order that closes your trade when a predefined price is hit. It’s the most basic form of risk control: you decide how much you are willing to lose before you enter the trade, and the stop loss enforces that limit. Traders across markets use stop losses to remove emotion, protect capital, and make position sizing meaningful.

How to Use the Stop Loss Calculator

  1. Enter your entry price — the price at which you plan to open the trade.
  2. Specify position size — number of shares, lots, or contracts.
  3. Choose risk amount — either a currency value (e.g., $200) or a percent of the account.
  4. Pick direction — long or short.
  5. Click Calculate — the tool returns the stop-loss price, money-at-risk, and suggested stop distance.

Note: For position sizing, pair this calculator with our Position Size Calculator. That combination tells you exactly how many units to trade so that the stop loss matches your pre-defined risk.

Why Stop Losses Matter

  • Control losses: Limit downside on every trade and protect your trading capital.
  • Enforce discipline: Stops force systematic exits and remove emotional “hope” trades.
  • Facilitate sizing: With a known stop distance, you can calculate the exact position size for your risk model.
  • Prevent catastrophic drawdowns: A single large unprotected loss can erase months of gains.

Common Stop-Loss Methods (Which One to Use?)

There is no single “best” stop — you must match the stop type to your strategy, timeframe, and the instrument’s volatility.

  • Fixed Percentage Stop: Place the stop X% away from entry (simple and clear; commonly 1–3% for swing trades).
  • ATR-Based Stop (Volatility Stop): Use Average True Range (ATR) to set stops relative to current volatility (e.g., 1.5× ATR). This adapts to changing market conditions and reduces the chance of being stopped out by normal noise.
  • Support/Resistance / Technical Stop: Place stops a few ticks/pips beyond a structure level (swing low/high, moving average, trendline).
  • Trailing Stop: A dynamic stop that moves in your favor, locking in gains while allowing winners to run.
  • Time-Based Stop: If the trade doesn’t work within a given time, exit (useful for stat/mean-reversion strategies).

Advanced Tips & Real-World Considerations

  • Factor in spread and slippage: Especially for small timeframes or illiquid crypto/altcoins — your executed stop might trigger slightly worse than the theoretical price.
  • Account for fees & funding rates: For futures and margin products, funding rates and exchange fees affect net P&L and thus should be considered when sizing risk.
  • Pre-calc worst-case scenarios: Use the Stop Loss Calculator together with our Take Profit / Risk-Reward tools and the Position Size Calculator to see portfolio-level outcomes from many simultaneous stops.
  • Use ATR or volatility stops in news-heavy markets: Around major releases (CPI, FOMC), volatility spikes — widen stops or reduce size to avoid unnecessary liquidations.
  • Mental stops vs placed stops: Placed stops guarantee execution; mental stops rely on you to click, and human reaction can fail under stress. Use placed stops for position-sized trades; mental stops only for discretionary micro-adjustments.
  • Hedging & partial exits: Instead of a single stop, consider scaling out (partial profit taking) and moving stops to breakeven as the trade moves in your favor.
  • Portfolio correlation: If multiple positions correlate (same sector/crypto), set aggregate drift limits — a single stop might not tell the whole risk story.

Examples

Example 1 — Forex (EUR/USD): Entry 1.1000, you risk $200 on the trade, position size 10,000 units. Calculator returns stop at 1.0978 (22 pips away) → $200 risk confirmed.

Example 2 — Crypto (BTC spot): Entry $60,000, you want to risk 1% of a $10,000 account ($100). The calculator gives a stop price around $59,800 (varies with size/fees) and the suggested position size to match that $100 risk.

Frequently Asked Questions

How far should my stop loss be?
There’s no universal answer. Use ATR or volatility-adjusted stops for volatile assets, and structure-based stops for trend-following strategies. Always size position after choosing the stop.
Should I use a mental stop or a placed stop?
Placed stops ensure execution and are recommended for most traders. Mental stops can be used by experienced discretionary traders who actively monitor positions — but they carry execution risk.
How do I avoid being stopped out by noise?
Use volatility-adjusted stops (ATR), avoid extremely tight fixed pip/tick stops on higher-timeframe trades, and account for spread/slippage.

Related Tools


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Outbound references:
Investopedia — Stop-Loss Order ·

Frequently Asked Questions

1. How to calculate stop loss?

If you are long: Stop Loss = Entry Price – (Entry Price × Risk %) If you are short: Stop Loss = Entry Price + (Entry Price × Risk %) Just enter the entry price and risk %, and the calculator will immediately show you the stop loss.

2. What is a 20-pip stop loss?

A 20-pip stop loss means that your stop loss is set just 20 pips away from your entry price. This pip measurement is used in forex trading.

3. What is stop loss and take profit margin?

It is the difference between the two prices on one hand, the stop loss which limits losses, on the other hand, the take profit which locks in profits. This helps to manage your trending ratio.

4. Does this calculator work across crypto, forex, and stocks?

Yes, this calculator works across all markets whether it’s crypto, forex, stocks, or commodities. All you need to do is enter the correct entry price and risk.

5. Does it include slippage and fees?

No, it does a basic calculation. It does not include trading fees, spreads, or slippage. So it’s wise to leave a little margin when you trade live.
If that position makes a profit of 5%, you will earn a profit of ₹100 — whereas without leverage, you would have earned just ₹5.

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