Stop-Loss Price Calculator
Calculate exact stop-loss price corresponding to your maximum allowable rupee risk.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
₹1,00,000 capital risking 1% on 100 shares bought at ₹400.
Dividing allowable ₹1,000 loss by 100 shares permits a 10-point stop, placing stop-loss at ₹390.
Assumptions & Parameters
- Stop order executes without extreme market slippage.
Frequently Asked Questions
Why use a calculated stop-loss?
Prevents emotional exits by strictly tying price distance to your risk budget.
How is stop-loss distance calculated?
Risk budget in rupees divided by the quantity of shares traded.
Where should stop-loss be placed for short trades?
For short trades, stop-loss is placed above the entry price: Entry + (Risk / Quantity).
What is slippage on stop-loss orders?
The difference between your stop trigger price and the actual execution fill during fast market moves.
Can a stop-loss guarantee against all losses?
No. Overnight market gaps can jump past your stop level, causing execution at the open price.
Should stop-loss be adjusted during a trade?
Only trail it in the direction of profit; never widen a stop to accommodate a losing trade.