📈 Trading & Investing

Stop-Loss Calculator

Calculate a stop-loss price from account risk and quantity.

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Calculate a stop-loss price from account risk and quantity. This dedicated page is built for fast, clean calculations and search visibility.

Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.

How to use this calculator

  1. Open the stop-loss calculator page.
  2. Enter the required values in the form fields.
  3. Click Calculate to see the result and breakdown.
  4. Use the related links to explore similar tools.
Results are estimates. For lending, taxes, trading, nutrition, or medical decisions, verify with a qualified professional.

Stop-Loss Calculator

Calculate a stop-loss price from account risk and quantity.

Result
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    Why stop loss placement matters

    A stop loss is an exit price that limits your loss on a trade if it moves against you. Setting it correctly requires knowing three things: your entry price, your maximum acceptable loss in rupees, and the price level where your trade thesis is invalidated. The stop should be placed at the thesis-invalidation level, then you size the position so the monetary loss at that stop equals your risk budget.

    Example: entry at ₹500, stop at ₹480 (4% risk), willing to lose ₹2,000 per trade. That means (₹500 – ₹480) = ₹20 per share, so you buy 100 shares (₹2,000 ÷ ₹20). This is position sizing driven by stop loss logic.

    Types of stop loss

    • Fixed percentage stop: Simple — exit if price drops X% from entry. Easy to backtest but ignores market structure.
    • ATR-based stop: Places the stop 1–2 ATR below entry. Adapts to volatility — wider in volatile markets, tighter in calm ones. Preferred by systematic traders.
    • Support-based stop: Placed just below a key support level. Requires chart reading but reflects meaningful price levels the market has respected.
    • Trailing stop: Moves up with price to lock in profits. Useful in trending markets but prone to premature exit in choppy conditions.

    The most dangerous habit is moving stops further away after a trade goes wrong — it turns a calculated loss into an unplanned large loss. Setting stops too tight within normal noise range leads to repeated stopouts before the move happens.

    Frequently asked questions

    Should I use a mental stop or a placed stop order?â–¼
    Placed stop orders are more reliable than mental stops for most traders. Mental stops are vulnerable to emotional override — you convince yourself to hold 'just a little longer.' The exception is illiquid stocks where a placed stop can be triggered by a temporary spike, in which case monitoring with a mental stop and quick execution may be better.
    What is a good stop loss percentage for intraday trading?â–¼
    Most intraday traders use 0.5–1.5% of the stock price as a stop loss, translating to 1–3% of capital per trade with proper position sizing. Going beyond 2% of capital per trade increases the probability of large drawdowns. The exact number depends on the stock's ATR relative to your entry price.
    How do I set stop loss for options trading?â–¼
    Options stop losses are typically set on premium value, not underlying price. A common approach: don't let an option lose more than 30–50% of its purchase price. For naked short options, stop loss on the underlying price is more relevant since premium can move unpredictably.
    Can a broker guarantee my stop loss execution at the exact price?â–¼
    No broker can guarantee exact execution at the stop price. In fast-moving markets or on gap opens, the order may fill at a worse price (slippage). This is especially common in illiquid stocks or during high-volatility events like earnings. For critical positions, consider a stop-limit order, though this risks not executing at all if price gaps through your limit.