Stop loss calculator
A good stop caps your loss at an amount you have already agreed with yourself, and sits far enough away that ordinary price wobbles leave it alone. Enter the entry, number of shares, the most you will lose and the stock's ATR, and the calculator returns the stop price that fits your budget. It then puts that stop next to percentage and volatility stops, so you can see whether the trade fits or should be smaller.
The loss at each stop
One position, several stops. Any bar that runs past your risk budget means the trade is too large for that stop.
The stop methods compared
Price of each stop, its distance from entry, the loss if it is hit and how many shares you could hold with it inside your budget.
| Method | Stop price | Distance | Loss if hit | Share of account | Shares within budget |
|---|
How each stop is placed
The budget stop is as far as price can go against you before the loss passes your limit. The ATR and percentage stops are placed by volatility or by a fixed rule, then tested against that same limit.
Risk budget
The most you will lose, in dollars.
budget = account × max loss %
Budget stop
Share the budget across your shares. It goes below entry on a long and above entry on a short.
stop = entry − budget ÷ shares (long)
ATR stop
A chosen number of typical daily ranges away from entry.
stop = entry − ATR × multiple (long)
Percentage stop
A set percentage of the entry price.
stop = entry × (1 − percent) (long)
Shares that fit
For any stop, the largest position that keeps the loss within the budget.
shares = budget ÷ |entry − stop|
Stop loss FAQ
How do I work out a stop loss price?
Decide the most you will lose, divide it by your share count and put the stop that far from your entry. With 200 shares bought at $40 and a $300 limit, the stop sits $1.50 lower, at $38.50. On a short it goes above the entry instead.
What is an ATR-based stop?
ATR, the average true range, measures how far a stock normally moves in a day. A stop one and a half to three ATRs away sits outside normal daily noise, so you are less likely to be knocked out of a good trade. Our average true range calculator works it out from price data.
Are fixed percentage stops any good?
A rule such as 7 or 8 percent below entry is simple and easy to follow. Its weakness is that it ignores volatility: 5 percent is generous for a utility stock and tight for a small biotech.
What if the right stop is wider than my budget allows?
Then the trade is too big. Leave the stop where the chart and volatility say it should be and buy fewer shares. Pulling the stop closer just to fit the budget usually gets it hit by normal movement.
Will the stop always fill at my price?
No. Once triggered, a stop turns into a market order, and in a fast market or an overnight gap it can fill well beyond your level. Read the loss shown here as the best case and keep size small enough that a gap is not a disaster.
Should I move the stop when the trade goes my way?
Many traders shift it to break-even once price has moved one risk unit in their favour, then trail it behind. Never move a stop further away to dodge a loss.