Stop Loss Calculator

Example: calculating a stop loss price

Assume your account balance is $10,000 and you risk 1% on the trade. That gives you a risk amount of $100.

If your entry price is $100 and your position size is 50 units, each $1 move equals $50 of profit or loss. A $100 risk allows a $2 stop distance.

For a long trade, the stop loss price is $98. For a short trade, the stop loss price would be $102.

How the calculation works

This calculator turns your risk amount and position size into a stop loss price.

Risk amount = account balance × risk %

Stop distance = risk amount / (position size × value per 1.00 price move)

Long stop loss = entry price - stop distance

Short stop loss = entry price + stop distance

The value per 1.00 price move lets you adjust the calculator for instruments where one full price point is not worth exactly one currency unit per position unit.

How to use this in trade planning

A stop loss should be connected to both your setup and your risk limit. If the calculated stop is too tight for the trade idea, the answer is usually smaller position size, not more risk.

This is where a trading journal matters. The calculator gives you the planned stop. The journal shows whether you respected it, moved it, ignored it, or exited according to plan.

Common questions

What is a stop loss?

A stop loss is a predefined price level where a trade should be closed if it moves against the plan. It is used to control risk before the trade is placed.

Should I calculate stop loss from risk or from the chart?

Ideally both matter. The chart may show where the trade idea is invalidated, but your account risk decides whether the position size is acceptable.

What does value per 1.00 price move mean?

It is the money value of a one-point price move per position unit. For simple stock or crypto examples, this is often 1. For other instruments, check your broker or contract specification.

Does this include slippage or commissions?

No. This calculator focuses on planned stop-loss risk. In real trading, spread, commissions, slippage and execution quality can change the final result.

Is this trading advice?

No. This is an educational risk-planning calculator. It does not tell you what to trade, when to trade, or what risk level is right for you.

Related trading tools

Continue the risk review with these free browser-based tools:

Pip Value Calculator
Forex Lot Size Calculator
Position Size Calculator
Risk Reward Calculator
R-Multiple Calculator
Expectancy Calculator
Drawdown Recovery Calculator
Daily Loss Limit Calculator

Use or link to this calculator on your website

You can link directly to this free calculator from a trading website, blog, education page, or community resource page.

Direct link

https://forgalis.com/tools/stop-loss-calculator/

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