Stop-Loss Price
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Distance ($)
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Risk (%)
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When Should You Use a Stop-Loss Calculator?
Use this calculator to determine the right exit level before placing a trade:
• Setting initial stop-loss on a new position
• Adjusting stops for volatile vs. calm stocks
• Comparing different stop methods
• Calculating risk for your position sizing
How It Works
1
Enter Your Price
Input the price you plan to buy the stock at.
2
Pick a Method
Choose percentage, dollar, or ATR-based stop distance.
3
Get Your Stop
The calculator shows the exact stop-loss price and risk metrics.
Example
Scenario: Buy MSFT at $420 with a 3% stop-loss on 50 shares.
Calculation: Stop = $420 × (1 - 0.03) = $407.40. Risk = $12.60/share × 50 = $630.
Result: Place stop at $407.40. Total risk is $630.
Frequently Asked Questions
A stop-loss is a predetermined price at which you exit a trade to limit your loss. It protects your capital when a trade goes against you.
Percentage-based stops (1-3%) are simplest and work well for beginners. ATR-based stops adapt to volatility and are preferred by experienced traders. Use what matches your trading style.
Far enough to avoid being stopped out by normal price fluctuations, but close enough to limit your loss. Typically 1-5% for stocks, or 1-2x ATR for volatility-based stops.
Yes. Trading without a stop-loss is like driving without a seatbelt. Even long-term investors benefit from having a maximum loss threshold.
ATR (Average True Range) measures a stock's average daily price movement over a period (usually 14 days). Using ATR for stop-losses means your stop adjusts to how volatile the stock actually is.
Related Tools
Quick Reference Table
| Method | Entry $50 | Stop Loss | Risk/Share | Notes |
|---|---|---|---|---|
| 2% Fixed | $50.00 | $49.00 | $1.00 | Simple, may be too tight |
| 5% Fixed | $50.00 | $47.50 | $2.50 | Standard for swings |
| 1.5× ATR | $50.00 | $47.75 | $2.25 | Adapts to volatility |
| 2.0× ATR | $50.00 | $47.00 | $3.00 | Most common ATR method |
| Support Level | $50.00 | $46.50 | $3.50 | Based on chart structure |
Stop losses placed at 2× ATR reduce premature stop-outs by approximately 40% compared to fixed percentage stops.