Stop-Loss Calculator

Calculate optimal stop loss levels for long and short positions. Input price and risk percentage for instant, precise trading exit points. Free trading tool.

Result Long $0
Short $0

Stop Loss Long Chart

Stop Loss Short Chart

Stop-Loss Formula

Long Position Stop-Loss

When you're buying an asset (going long), calculate your stop-loss level:

Stop Loss = Entry Price - (Entry Price × Risk Percentage)

Example: If you buy at $100 with 5% risk
Stop Loss = $100 - ($100 × 0.05) = $95

Short Position Stop-Loss

When you're selling an asset (going short), calculate your stop-loss level:

Stop Loss = Entry Price + (Entry Price × Risk Percentage)

Example: If you short at $100 with 5% risk
Stop Loss = $100 + ($100 × 0.05) = $105

Stop-Loss Meaning

A stop-loss is an automated trading order that limits your potential loss on a position. It works like a safety net, automatically closing your trade if the market moves against you by a predetermined amount. This essential risk management tool helps protect your trading capital and ensures that no single trade can significantly damage your account.

How Stop-Loss Works

When you enter a trade, you set a stop-loss at a specific price level where you want to exit if the trade goes against you. For example:

For Buy (Long) Positions:

If you buy a stock at $100 and set a stop-loss at $95, your position will automatically close if the price falls to $95, limiting your loss to 5%.

For Sell (Short) Positions:

If you short a stock at $100 and set a stop-loss at $105, your position will automatically close if the price rises to $105, limiting your loss to 5%.

Key Features of Stop-Loss Orders

Automatic Execution: Orders execute automatically when price reaches the stop level
Risk Management: Helps you predetermine and limit potential losses
Emotion Control: Removes emotional decision-making during market volatility
Capital Protection: Prevents small losses from becoming large drawdowns

Pros and Cons of Using Stop-Loss Orders

Pros

Automatically limits potential losses and protects your capital
Removes emotional decision-making during market volatility
Allows you to trade without constant market monitoring
Helps maintain consistent risk management discipline
Prevents a small loss from becoming a significant drawdown
Enables clear position sizing and risk calculation before entering trades

Cons

May get triggered by temporary price fluctuations or market noise
Can miss out on potential recoveries after getting stopped out
During high volatility, orders might execute at worse prices than set
Stop-loss hunting by large market players can trigger your exits
May not protect against overnight gaps or extreme market moves
Can create a false sense of security in highly volatile markets