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Stop Loss Calculator - Calculate Optimal Stop Loss Levels

Free stop loss calculator to determine optimal exit points based on risk management. Calculate stop loss price for stocks and protect your trading capital.

Stop Loss Price

₹90.00

Risk Amount

₹2,000

Distance

10.00%

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Disclaimer

This calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.

What is Stop Loss Calculator - Calculate Optimal Stop Loss Levels?

A Stop Loss Calculator helps traders determine the optimal price level to place their protective stop loss order. A stop loss is a predetermined exit price that automatically closes your trade if the market moves against you, limiting your loss to an acceptable amount. This calculator uses your entry price, account size, risk percentage per trade, and position size to calculate the exact stop loss price. Proper stop loss placement is the cornerstone of risk management - it's the difference between staying in the game long-term versus blowing up your account. Professional traders ALWAYS use stop losses without exception.

How to Use This Calculator

  1. Enter your trade entry price per share
  2. Input your total trading account size
  3. Set your risk percentage per trade (typically 1-2%)
  4. Enter the number of shares in your position
  5. View the calculated stop loss price
  6. See the maximum loss amount if stop is triggered
  7. Optionally adjust parameters to optimize stop placement

Formula Used

Stop Loss Calculation Formulas: Method 1: Based on Risk Amount Stop Loss Price = Entry Price - (Risk Amount / Quantity) Where: - Risk Amount = Account Size × (Risk % / 100) Method 2: Based on Percentage Stop Loss Price = Entry Price × (1 - Stop Loss %) Method 3: Based on Technical Levels Stop Loss = Below Support (for longs) / Above Resistance (for shorts) Example Calculation: Entry Price: ₹500 Account Size: ₹5,00,000 Risk per Trade: 2% Quantity: 500 shares Risk Amount = ₹5,00,000 × 2% = ₹10,000 Risk per Share = ₹10,000 / 500 = ₹20 Stop Loss Price = ₹500 - ₹20 = ₹480 Verification: If Stop Hit: Loss = 500 × ₹20 = ₹10,000 (exactly 2% of account) ✓ Types of Stop Loss: 1. Fixed Percentage: Entry - X% (e.g., 5%) 2. Fixed Amount: Entry - ₹X per share 3. Technical Level: Below support/above resistance 4. ATR-based: Entry - (2 × ATR) 5. Trailing Stop: Moves up with price, never down

Example Calculation

Example 1: Conservative Stop Loss (Swing Trade) Trader Profile: - Account Size: ₹10,00,000 - Risk Tolerance: 1% per trade - Strategy: Swing trading (3-5 day holds) Trade Setup: - Stock: Reliance Industries - Entry Price: ₹2,500 - Quantity: 200 shares - Investment: ₹5,00,000 Calculation: - Maximum Risk: ₹10,00,000 × 1% = ₹10,000 - Risk per Share: ₹10,000 / 200 = ₹50 - Stop Loss: ₹2,500 - ₹50 = ₹2,450 - Stop Loss %: 2% below entry Result: If stock falls to ₹2,450, you lose exactly ₹10,000 (1% of account). This allows for 100 consecutive losing trades before account zeroes (theoretically). Example 2: Aggressive Intraday Stop (Tight) Profile: - Account: ₹2,00,000 - Risk: 0.5% (intraday - tighter risk) - Trade Type: Breakout trade Setup: - Entry: ₹1,000 (at breakout) - Quantity: 100 shares - Investment: ₹1,00,000 Calculation: - Max Risk: ₹2,00,000 × 0.5% = ₹1,000 - Risk per Share: ₹1,000 / 100 = ₹10 - Stop Loss: ₹1,000 - ₹10 = ₹990 - Stop Loss %: 1% (tight!) Rationale: Intraday breakout - if breaks below ₹990, setup failed. Exit fast. Tighter stops for intraday are common. Example 3: Technical Level Stop Loss Setup: - Stock trading at ₹500 - Support level at ₹480 (recent swing low) - Entry: ₹500 - Position: 250 shares Technical Stop Placement: Stop Loss = ₹478 (slightly below support) Why: If support at ₹480 breaks, trend is violated. ₹478 gives buffer for false breakdowns. Risk Calculation: - Risk per Share: ₹500 - ₹478 = ₹22 - Total Risk: 250 × ₹22 = ₹5,500 Is this acceptable? If account is ₹5,00,000 and you're OK with 1.1% risk, yes. If not, reduce position size to 227 shares (₹5,000 / ₹22). Example 4: Trailing Stop Loss Strategy Entry: ₹100 Initial Stop: ₹95 (5% risk) Position: 500 shares Price Movement Timeline: Day 1: Price ₹100 → Stop ₹95 (5% below) Day 3: Price ₹108 → Move stop to ₹102.60 (5% below new high) Day 5: Price ₹115 → Move stop to ₹109.25 Day 7: Price ₹120 → Move stop to ₹114 Day 9: Price dips to ₹113 → Stop triggered at ₹114 Result: Instead of ₹5 profit, you made ₹14 profit per share (₹7,000 total) by trailing stop! Never move stop down, only up. Example 5: ATR-Based Stop Loss Stock: XYZ Ltd Current Price: ₹500 ATR (14-day): ₹15 Entry: ₹500 ATR Stop Formula: Entry - (2 × ATR) Stop Loss = ₹500 - (2 × ₹15) = ₹470 Why ATR? Accounts for stock's volatility. Volatile stocks need wider stops. A ₹15 ATR stock needs ₹30 stop while ₹5 ATR stock needs only ₹10 stop for same entry price.

Frequently Asked Questions

Where should I place my stop loss?

Three methods: 1) Risk-based: Calculate from account size × risk% ÷ quantity, 2) Technical: Below recent support (longs) or above resistance (shorts), 3) ATR-based: Entry ± (2 × ATR). Best practice: Use technical levels first, then verify risk is acceptable. If technical stop risks >3%, reduce position size or skip trade. Never place stops randomly - they must have logical basis.

Should I use mental stops or place orders in system?

ALWAYS place stop loss orders in the system! Mental stops fail because: 1) Emotions take over when losing, 2) You rationalize holding, 3) Small loss becomes big loss, 4) You miss stop price while not watching. Horror stories of 'I'll get out at ₹95' turning into ₹70 disasters. Set and forget - let system execute emotionlessly. Only exception: Scalpers watching tick-by-tick.

Can I move my stop loss further away if price approaches it?

NO! Never widen stops or remove them. This is how accounts blow up. If you placed stop at ₹95 and price hits ₹96, you're wrong - accept it. Moving stop to ₹90 means: 1) Violating risk management, 2) Risking more than planned, 3) Hoping and praying instead of trading. Only move stops in profit direction (trailing), NEVER move them away from profit.

What percentage should my stop loss be?

Depends on timeframe and strategy: Day trading: 0.5-1%, Swing trading: 2-5%, Position trading: 5-10%. BUT, base it on technical levels first! If logical support is 2% away, that's your stop even if you prefer 1%. If logical stop is 8% but you only risk 2%, reduce position size. Never use arbitrary percentages - combine technical logic with risk tolerance.

What if my stop loss gets triggered by intraday volatility?

Called 'getting stopped out'. Part of trading! Options: 1) Use wider stops (2-3% for swing trades), 2) Use end-of-day stops instead of intraday, 3) Place stop slightly below support, not at exact level, 4) Accept that you'll occasionally be stopped out just before reversal. It's better to take small losses and re-enter than risk large losses holding without stops.

How do I prevent stop loss hunting by big players?

Stop hunting happens near obvious levels (₹500, major support). Strategies: 1) Place stops ₹2-5 below round numbers, not exactly at them, 2) Use limit orders instead of stop-loss market orders, 3) Use end-of-day candle close stops for swing trades, 4) Accept small stop losses as cost of business. Don't widen stops drastically just to avoid hunting - risk management is priority over avoiding stop hits.

Should I use trailing stop loss for all trades?

Great for trending markets, problematic in choppy markets. Trailing stops work when: 1) Strong trend in place, 2) Stock moving steadily in your direction, 3) Want to ride winners. Don't use when: 1) Range-bound market (gets stopped out on retracements), 2) Quick profits available (fixed target better), 3) Stock moving slowly. Combine: Use fixed stop initially, switch to trailing after 1:1.5 R:R achieved.

What's the worst mistake traders make with stop losses?

Not using them at all! Stories of 'bought at ₹500, now ₹200, waiting for recovery' are classic. Other mistakes: 1) Setting stop then removing when hit, 2) Moving stops away from price, 3) Using mental stops, 4) Stops too tight (5 failed trades vs 1 good trade), 5) Stops too wide (1 loss wipes 10 wins). Remember: Stop loss is INSURANCE. You don't cancel home insurance when there's a fire - same logic for stops.

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