Calculate stop and target price levels from your entry, direction and chosen risk distance.
How this is calculated
Risk distance = the price distance entered directly, or entry price × (risk % ÷ 100), or ATR value × ATR multiple
Long stop = entry price − risk distance; long target = entry price + (risk distance × reward ratio)
Short stop = entry price + risk distance; short target = entry price − (risk distance × reward ratio)
Laddered targets: T1 = 1 × risk distance from entry, T2 = 2 ×, T3 = 3 ×, applied in the direction of the trade
Worked example
Long entry 182.40, risk mode price distance, risk value 2.50, reward ratio 3.
Stop = 182.40 − 2.50 = 179.90.
Target = 182.40 + (2.50 × 3) = 189.90.
Laddered targets: T1 = 184.90, T2 = 187.40, T3 = 189.90.
Understanding stop and target placement
Stop and target placement converts a chosen risk distance into two absolute price levels. Direction matters: on a long the stop sits below entry and the target above, and on a short the arrangement is reversed. Once the direction and the risk distance are fixed, both levels follow arithmetically and there is no discretion left in the calculation itself.
There are three common ways to express the risk distance, and the calculator accepts all of them. A price distance is entered directly in points or dollars and is the simplest to reason about. A percentage of entry scales the distance with the price of the instrument, so the same setting produces a wider absolute stop on a higher-priced symbol. An ATR multiple derives the distance from a volatility reading, so the stop widens when recent ranges have been larger. None of the three is inherently more correct; they differ in what the distance is anchored to.
The reward ratio scales the risk distance to produce the target. That makes the target arithmetically consistent with the stop, but it does not mean price will travel that far. Structure, volatility and liquidity determine what is reachable, and a ratio chosen on paper says nothing about how often it is met. What the ratio does describe precisely is the break-even arithmetic: a plan at 1 : 3 needs a smaller share of winners to stay flat than a plan at 1 : 1, before costs.
The laddered table shows the 1R, 2R and 3R levels regardless of the ratio entered, because partial exits are usually described in R terms rather than in prices. Scaling out at 1R and leaving the remainder to run changes the realised outcome distribution of a plan: it raises the proportion of trades that close at or above break-even and lowers the average size of the largest winners. Whether that trade-off suits a given approach is a matter of plan design, not of arithmetic, and the calculator makes no claim either way.
Orders also fill at real prices rather than requested ones. Gaps and slippage can place the executed exit beyond the calculated level, particularly around scheduled news and at session opens, and stop orders become market orders once triggered. Treat the levels here as the plan on entry, and the fill report as what actually happened. Where the two diverge consistently, the gap is usually information about liquidity in the instrument rather than about the calculation.
Frequently asked questions
Should the stop go above or below entry?
Below entry for a long position and above entry for a short position. Selecting the direction applies the correct sign automatically.
Can I set risk as a percentage instead of a price distance?
Yes — a percentage of entry price is converted into a price distance before the levels are calculated.
Does the target reflect probability?
No. It is the arithmetic result of scaling your risk distance by the reward ratio you enter.
Why did my order fill away from the level?
Stops and targets execute at available market prices. Gaps, thin liquidity and fast moves can produce fills beyond the calculated level.