How This Calculator Works
Plan a trade before entering it by converting stop-loss and take-profit percentages into price levels. Select a long or short trade, enter the stock price, and compare the potential risk with the potential reward.
| Input | What to enter |
|---|---|
| Transaction type | Choose long when planning for a rise or short when planning for a decline. |
| Stock price | The intended entry or reference price per share. |
| Stop loss and take profit | The percentage distance to the loss limit and profit target. |
How to Use the Calculator
- Choose the long or short transaction type.
- Enter the intended stock entry price.
- Enter the stop-loss and take-profit percentages.
- Calculate and review the price levels and risk-reward ratio.
Frequently Asked Questions
What is a risk-reward ratio?
It compares the amount a trade could lose at the stop-loss with the amount it could gain at the take-profit target.
What is the difference between long and short calculations?
A long setup places the loss level below and target above the entry price. A short setup reverses those directions.
Does a higher reward target make a trade better?
Not automatically. A target must also be realistic, and the probability of reaching it matters alongside the ratio.