Stop Distance Budget Calculator
From per-trade risk amount and planned position value, derive the maximum allowed stop distance in percent.
Results
Fill in the inputs and click Calculate.
- Max Stop Distance
- –
Risk disclaimer
Slippage and gaps are ignored; the real stop loss can exceed the plan.
What does the stop budget solve?
Once the position value is set, the risk amount decides how far the stop can sit: distance = risk ÷ position value.
If your technical stop is further than the budget, shrink the size or raise the risk.
How to use
- Enter the per-trade risk amount.
- Enter the planned position value.
- Click Calculate for the allowed stop distance %.
Formula
- Allowed stop % = risk amount ÷ position value × 100%
Example
Risk 100 on a 2,000 position → allowed stop 5%.
If your technical stop needs 8%, cut the size to 1,250 or raise the budget.
FAQ
Relation to the position size calculator?
That tool derives size from a chosen stop; this tool derives the allowed stop from a risk amount — complementary.