Stop loss calculator
A stop loss should sit where it limits your loss to an amount you have already accepted, and where normal price swings are unlikely to hit it. Enter your entry, position size and the most you are willing to lose, plus the stock's ATR, and this calculator gives you the stop price that matches your risk budget. It then compares that stop with percentage and volatility-based stops, so you can see whether the trade fits or the position needs to be smaller.
Loss if each stop is hit
The same position with each stop. Any bar longer than your risk budget means the trade is too big for that stop.
Stop methods side by side
Each stop's price, distance from entry, the loss if it is hit and the number of shares you could hold with it and stay within budget.
| Method | Stop price | Distance | Loss if hit | Share of account | Shares within budget |
|---|
How the stops are worked out
The budget stop is the furthest the price can move against you before you lose more than your limit. The ATR and percentage stops are placed by volatility or a fixed rule, and then checked against that same limit.
Risk budget
The most you will lose, in dollars.
budget = account × max loss %
Budget stop
Spread the budget across your shares. Below entry for a long, above for a short.
stop = entry − budget ÷ shares (long)
ATR stop
A multiple of the typical daily range away from entry.
stop = entry − ATR × multiple (long)
Percentage stop
A fixed share of the entry price.
stop = entry × (1 − percent) (long)
Shares within budget
For any stop, the largest position that keeps the loss within budget.
shares = budget ÷ |entry − stop|
Stop loss questions
How do I calculate a stop loss price?
Decide the most you will lose on the trade, divide it by the number of shares, and place the stop that far from your entry. With 200 shares bought at $40 and a $300 limit, the stop goes $1.50 below entry, at $38.50. For a short, the stop goes above the entry instead.
What is an ATR stop?
ATR, the average true range, measures how far a stock usually moves in a day. Placing a stop one and a half to three ATRs away keeps it outside normal daily noise, so you are less likely to be shaken out of a good trade. Our average true range calculator works out ATR from price data.
Is a percentage stop a good idea?
A fixed percentage, such as 7 or 8 percent below entry, is simple and easy to stick to. Its weakness is that it ignores how volatile the stock is: 5 percent is a wide stop for a utility stock and a tight one for a small biotech.
What if my stop is wider than my risk budget allows?
Then the position is too big. Keep the stop where the chart and volatility say it belongs and buy fewer shares. Moving the stop closer just to fit the budget usually means it gets hit by normal movement.
Will my stop always fill at the stop price?
No. A stop becomes a market order once triggered, and in a fast market or an overnight gap it can fill well past your price. Treat the loss shown here as the best case, and keep position sizes small enough that a gap does not do serious damage.
Should I move my stop once the trade works?
Many traders move it to break-even after the price has moved one risk unit in their favour, then trail it behind the price. Never move a stop further away to avoid taking a loss.