Stop Loss & Take Profit Calculator
Set exact stop loss and take profit price levels based on your entry and risk percentage.
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For educational purposes only. Not financial advice.
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Frequently Asked Questions
How do you calculate a stop loss price for a day trade?
For a long: Stop Price = Entry × (1 − Stop%). A 2% stop on a $50 entry gives a $49.00 stop. For a short: Stop Price = Entry × (1 + Stop%). A 2% stop on a $50 short entry gives a $51.00 stop.
A more precise method anchors stops to chart structure — below the nearest key support level for longs, above resistance for shorts — then back-calculates the implied percentage. Enter your entry price and stop percentage above to get the exact stop price and the implied R:R at your target.
How do you calculate a take profit target based on risk/reward ratio?
Take Profit = Entry + (Stop Distance × Target R:R) for longs. Take Profit = Entry − (Stop Distance × Target R:R) for shorts.
Example (long): entry $50, stop $48.50 (stop distance $1.50), 2:1 target → take profit = $50 + ($1.50 × 2) = $53.00. Example (short): entry $55, stop $56.50 (distance $1.50), 2:1 target → $55 − $3.00 = $52.00. The calculator shows these levels instantly for both directions.
What is the difference between a stop market order and a stop limit order?
A stop market order triggers at your stop price and executes immediately as a market order — you are guaranteed an exit but not a specific fill price. In fast-moving or illiquid stocks, fills can be significantly below your stop.
A stop limit order triggers at your stop price but executes only at your limit price or better — you control the fill price but risk not getting filled if the stock gaps through your limit, leaving you in a losing position with no exit. Day traders in liquid large-cap stocks generally prefer stop market orders for guaranteed execution; stop limits suit less volatile setups.
What is the best stop loss percentage for day trading?
There is no single best percentage — the right stop width depends on the stock's volatility and chart structure. A $10 stock with a $0.15 average true range (ATR) needs at least a $0.30 stop (3%) to avoid being stopped out by routine price noise. A $100 stock with a $2 ATR needs at least $4 (4%).
General guideline: set the stop just beyond the nearest technical invalidation point (key support or resistance), confirm the required distance fits within your 1–2% account risk budget, then calculate position size accordingly.
Should I place a stop loss based on a percentage or a technical price level?
Technical levels produce better results in practice. A percentage-based stop is convenient but arbitrary — the market does not know or care that your stop is at a round 2% below entry.
A stop placed just below a key support level, a prior day's low, or the VWAP is positioned at a point where the trade thesis is actually wrong if breached. The practical workflow: identify your technical stop level first, then check whether the resulting percentage fits within your risk budget. If it does not, reduce position size rather than tighten the stop arbitrarily.
How does your stop distance directly determine your position size?
Stop distance (Entry − Stop) is the per-share risk, which is the denominator in position size math. A tighter stop allows more shares for the same dollar risk budget; a wider stop forces fewer shares.
Example: $10,000 account, 1% risk ($100 budget), $50 entry. With a $1.00 stop: 100 shares maximum. With a $2.00 stop: 50 shares maximum. Tighter stops create larger positions — but they also carry a higher probability of being triggered by normal intraday noise, so do not use artificially tight stops just to increase share count.
