Stop Loss
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
SL
About this calculator
The Stop Loss calculator is a useful tool for investors who want to limit their losses in case of a market decline. It calculates the stop loss price based on the entry price and the percentage of risk that the investor is willing to assume.
The formula used to calculate the stop loss price is simple: stop_loss_price = entry_price·(1 − risk_percentage). This means that the stop loss price will be lower than the entry price, providing protection against excessive losses.
It is essential to use the Stop Loss calculator in real-life investment scenarios, such as when buying stocks or other financial assets. Additionally, it is crucial to be careful when defining the risk percentage, as this can significantly impact the calculation result.
Another important consideration is to regularly monitor the stop loss price and adjust it as needed. This can help ensure that the investor is always protected against excessive losses and that their investment is aligned with their financial goals.
Frequently asked questions
What is Stop Loss?
Stop Loss is an investment strategy that aims to limit losses in case of a market decline. It is calculated based on the entry price and the percentage of risk that the investor is willing to assume.
How does the Stop Loss calculator work?
The Stop Loss calculator uses the formula stop_loss_price = entry_price·(1 − risk_percentage) to calculate the stop loss price. Simply enter the entry price and risk percentage to get the result.
When should I use the Stop Loss calculator?
You should use the Stop Loss calculator in real-life investment scenarios, such as when buying stocks or other financial assets. This can help protect your investment against excessive losses.
How do I define the risk percentage?
The risk percentage depends on your investor profile and financial goals. It is essential to define a risk percentage that is realistic and does not compromise your investment.
Can I adjust the stop loss price?
Yes, it is crucial to regularly monitor the stop loss price and adjust it as needed. This can help ensure that the investor is always protected against excessive losses.