This post will show you how to use our Stop Loss Level Calculator. We will begin with an explanation of the inputs required to use this calculator and then walk you through how to use our Stop Loss Level Calculator to calculate the perfect place to put your stop loss and avoid losing more than your risk limit in your trade.
What Is Stop Loss Price level?
The stop-loss level is the price at which you wish to quit your position in a trade. Let’s say you want to enter a buy position. You need to set a stop loss level below your entry price so that if the price starts falling after your order, your trade will close at your stop loss level.
Inputs Needed to use Stop Loss level Calculator
You need to put four things in place in order to use this calculator: the entry price, the risk limit, the lot size, and the order type. When you input the above parameters, our calculator will help you calculate the perfect place to put your stop-loss level.
(1). Entry price: This is the price at which you intend to enter a trade.
(2). Risk Limit: This is the Maximum amount you want to risk in a trade.
(3). Lot size: This is a measure of the amount of an asset you want to buy or sell in a transaction. Check out our lot size calculator.
(4). Order Type: Buy or sell order.
How to use our Stop Loss level Calculator
Using this calculator is very simple. You just need to give it the entry price, risk limit, lot size, and order type, and it will calculate the appropriate stop loss level for you.
As shown in the image below, I have input an entry price of 547931.50, a risk limit of 100, a lot size of 0.5, and selected a “buy order.” My calculated stop loss level is 547731.5.