Plan the exit before you enter. Enter your entry price, a stop-loss and a take-profit (as % or price) plus your share count to get exact exit prices, dollar risk, dollar reward and the all-important risk/reward ratio.
Answer first: professional traders decide where they will get out before they get in. This tool turns your entry price and your stop-loss / take-profit percentages into concrete exit prices, then multiplies the gap by your share count to show the actual dollars at risk and at stake — and the risk/reward ratio that decides whether the trade is even worth taking.
Stop price = Entry × (1 − stop%) · Target = Entry × (1 + profit%)
Example: buy 100 shares at $100, stop at −8% ($92), target at +20% ($120). You risk $8 × 100 = $800 to make $20 × 100 = $2,000 — a risk/reward of 1 : 2.5.
A trader who wins only 40% of the time can still be highly profitable if every winner is 2.5× the size of every loser. The calculator shows your break-even win rate — the percentage of trades you must win just to break even at that risk/reward. At 1:2.5, you only need to be right about 29% of the time. That single insight is why disciplined risk control matters more than being “right.”
A stop-loss only protects you if the position size behind it is sensible. Most risk frameworks cap the loss on any one trade at 1–2% of the total account. If you risk $800 on a trade but that is 10% of your account, the stop is too loose or the position is too big — use the position size calculator to work backwards from the dollars you are willing to lose to the number of shares you should buy.
A stop placed at a random round percentage often sits right where normal volatility will trigger it for no reason. Experienced traders anchor stops to structure — just below a support level, a recent swing low, or a multiple of average true range — so the stop only fires if the trade thesis is genuinely wrong. Practise this risk-free in the day-trading simulator before risking real money.
Reality check: a stop-loss order is not guaranteed to fill at your stop price — in a fast-moving or gapping market it executes at the next available price, which can be worse (slippage). Stops manage risk; they do not eliminate it. Educational tool only — not financial advice.
Pair this with the position size calculator, the risk/reward calculator, and read what is a stop-loss order and risk management basics.
Last updated 27 June 2026 · Written by Mustafa Bilgic. Educational only — not financial advice.
Multiply the entry price by one minus your stop-loss percentage. A $100 entry with an 8% stop gives a stop price of $92. Your dollar risk is that gap times the number of shares.
Many traders look for at least 1:2, meaning the potential reward is twice the risk. A higher reward-to-risk ratio lowers the win rate you need to break even, but it must be realistic for the setup.
It is the percentage of trades you must win to break even at a given risk/reward ratio. At 1:2 you need to win about 33%; at 1:3 only about 25%. It shows why managing the size of wins and losses matters more than being right.
No. A standard stop-loss becomes a market order once triggered, so in a fast or gapping market it can fill at a worse price than your stop, a phenomenon called slippage. It limits risk but does not remove it.