🛑 Stop Loss Calculator
Calculate your exact stop-loss price trigger and determine potential dollar losses before pulling the trigger on any trade.
Downside Protection
The Mathematics of Loss Recovery
Losses work exponentially against your portfolio. A 10% loss requires an 11.1% gain to break even, but a 50% loss requires a massive 100% gain just to return to flat. Strict stop-loss enforcement stops catastrophic drawdowns before they inflict permanent mathematical damage on your compounding engine.
Frequently asked questions
What is a stop-loss order in stock trading?
A stop-loss is an order placed with a broker to sell an equity when it reaches a specific predetermined price, designed to limit an investor's loss on a security position.
What is the difference between a stop-market and stop-limit order?
A stop-market triggers a market order once the stop price is hit, guaranteeing execution but not price. A stop-limit order triggers a limit order, guaranteeing execution price but risking non-execution during fast market crashes.
Where should I place my stop loss?
Traders typically position stops just beyond technical market invalidation points—such as below key support zones, moving averages, or recent swing lows—rather than choosing an arbitrary percentage.
What is a trailing stop?
A trailing stop is a dynamic stop loss that automatically ratchets upward as the stock price climbs, locking in accrued profits while maintaining downside protection.