What is a Stop Loss & Target Calculator?
A Stop Loss & Target Calculator is a trading tool that helps you define your exit strategy before entering a trade. By calculating the stop loss price and target price based on your entry and desired risk-reward ratio, this calculator enforces discipline, reduces emotional trading, and increases long-term consistency.
This tool is especially useful for beginner and intermediate Indian traders who want to avoid large losses and plan for realistic profits.
How to Use the Stop Loss & Target Calculator
- Enter the Entry Price: This is the price at which you plan to buy (or sell) the stock.
- Enter the Risk per Trade (in ₹ or %): Define how much you're willing to lose on the trade.
- Choose a Risk-Reward Ratio: A 1:2 or 1:3 ratio is commonly used by traders.
- Click Calculate: The calculator will provide the ideal Stop Loss Price and Target Price based on your inputs.
This allows you to plan your trades in advance, improving your risk management and profit potential.
Benefits of Using a Stop Loss & Target Calculator
- Risk Management: Avoid oversized losses by defining exit points in advance.
- Trade Planning: Set logical, data-driven targets and stops without emotional interference.
- Improves Discipline: Encourages sticking to your trading plan instead of impulsive decisions.
- Boosts Risk-Reward Consistency: Helps you maintain a positive risk-reward profile across trades.
Practical Use Cases for Indian Traders
- Day traders planning Bank Nifty or Nifty 50 options trades with precise stop loss and target points.
- Swing traders buying stocks like Reliance or Infosys with pre-defined risk-reward zones.
- Investors entering positional trades using fixed capital risk per trade.
- Beginners using the tool to avoid emotional exits and protect capital.
FAQs – Stop Loss and Target Calculator
1. What is a good risk-reward ratio for stock trading?
A minimum of 1:2 is generally advised. This means for every ₹1 of risk, you aim to make ₹2 in profit.
2. Is stop loss necessary in every trade?
Yes, especially for beginner and intermediate traders. Stop loss protects your capital from unexpected market movements.
3. Can this calculator be used for intraday trading?
Absolutely. It’s ideal for intraday, swing, and positional trading. Use it with Bank Nifty, Nifty 50, and high-beta stocks.
4. How does this tool calculate stop loss and target?
It uses your entry price, risk amount, and risk-reward ratio to calculate:
Stop Loss = Entry Price - (Risk per Trade / Quantity)
Target = Entry Price + (Risk per Trade × Reward Ratio / Quantity)
Take Control of Every Trade
Use our Stop Loss & Target Calculator to create a clear trade plan and protect your capital with confidence.
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