🏛️ Conservative Stock Trade
Low Risk Direction: Long Entry: $100 Risk: 1.5% R:R: 1:2
Stop Loss: $98.50
Take Profit: $103.00
Conservative approach with tight risk control. Perfect for blue-chip stocks and steady growth strategies.
🎯 Stop Loss & Take Profit Calculator
Calculate optimal stop loss and take profit levels for your trades. Plan your exit strategy, manage risk effectively, and maximize your trading potential with precise exit points. Perfect complement to our position sizing and risk management calculators.
Risk Protection
Profit Optimization
Strategy Planning
Calculate Your Exit Strategy
Plan your stop loss and take profit levels for optimal risk management
Quick Examples
Choose your trade direction
Your entry price for the trade
Maximum risk as % of entry price
Risk to reward ratio target
Your Exit Strategy
Stop Loss: $48,000.00
Take Profit: $54,000.00
Risk Distance: $2,000.00
Reward Distance: $4,000.00
Risk %: 2.0%
Win Rate Needed: 33.3%
Real Stop Loss & Take Profit Examples
Learn from practical examples across different markets and risk levels. Click any example to load it into the calculator above.
💱 Moderate Forex Trade
Medium Risk Direction: Long Entry: $1.2000 Risk: 2.0% R:R: 1:3
Stop Loss: $1.1760
Take Profit: $1.2720
Balanced forex strategy with good risk-reward ratio. Suitable for major currency pairs during trending markets.
₿ Aggressive Crypto Trade
High Risk Direction: Long Entry: $50,000 Risk: 3.0% R:R: 1:4
Stop Loss: $48,500
Take Profit: $56,000
High-reward crypto strategy with excellent risk-reward ratio. Requires strong conviction and market analysis.
📉 Short Position Example
Medium Risk Direction: Short Entry: $200 Risk: 2.5% R:R: 1:2.5
Stop Loss: $205.00
Take Profit: $187.50
Short selling example showing how stop losses work above entry price for bearish positions.
How to Use the Stop Loss Take Profit Calculator
1
Choose Trade Direction
Select whether you're going long (buying) or short (selling). This determines how stop loss and take profit levels are calculated relative to your entry price.
2
Set Entry Price
Enter your planned or actual entry price. This is the baseline for calculating both your stop loss (risk) and take profit (reward) levels.
3
Define Risk Percentage
Input your maximum risk tolerance as a percentage. This determines how far your stop loss should be from your entry price based on your account size.
4
Set Reward Ratio
Choose your desired risk-to-reward ratio. A 1:2 ratio means you're willing to risk $1 to potentially make $2, helping ensure long-term profitability.
Understanding Stop Loss & Take Profit Strategy
Why Use Stop Losses?
Stop losses are essential for capital preservation. They automatically close losing positions, preventing small losses from becoming account-destroying disasters. They also remove emotion from exit decisions.
Take Profit Strategy
Take profit levels secure your gains by automatically closing profitable positions. They help you maintain discipline and avoid the common mistake of holding winning trades too long and watching profits disappear.
Risk-Reward Ratios
A good risk-reward ratio (like 1:2 or 1:3) means your average win is larger than your average loss. This allows you to be profitable even if you're wrong more often than you're right.
Position Sizing
Your stop loss distance should determine your position size, not the other way around. Risk a fixed percentage of your account per trade, then adjust position size based on your stop loss distance.
Frequently Asked Questions
What is a stop loss in trading?
A stop loss is a predetermined price level where you'll exit a losing trade to limit your losses. It's a crucial risk management tool that helps protect your capital by automatically closing positions when they move against you.
How do you calculate stop loss levels?
Stop loss levels are calculated based on your risk tolerance and entry price. For long positions: Stop Loss = Entry Price - (Risk Amount / Position Size). For short positions: Stop Loss = Entry Price + (Risk Amount / Position Size).
What is a good risk-reward ratio?
A good risk-reward ratio is typically 1:2 or better, meaning you risk $1 to potentially make $2 or more. Many professional traders use ratios of 1:2, 1:3, or 1:4 to ensure profitable trading even with a moderate win rate.
Should I always use stop losses?
Yes, stop losses are essential for risk management. They protect your capital from significant losses and help maintain emotional discipline. Even experienced traders use stop losses to preserve capital for future opportunities.
Ready to Trade with Perfect Exit Strategy?
Our stop loss calculator helps with risk management, but combine it with our position sizing and profit/loss calculators, then take your trading to the next level with our AI-powered Infinity Algo indicator for TradingView. Perfect for finding optimal entry and exit points.