Cryptocurrency Q&A
What is the formula for stop-loss?
What is the formula for stop-loss?
Giuseppe
Sun Oct 13 2024
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7 answers
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I'm trying to find out the formula for stop-loss. I need this information to understand how it works and how I can apply it in my situation. Can someone please provide me with the formula or explain how it is calculated?
7 answers
Chloe_thompson_artist
Tue Oct 15 2024
The percentage method is a popular approach to calculating stop loss in stock trading. It involves determining a percentage of the current market value of the stock that you are willing to risk losing before exiting the trade.
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Michele
Tue Oct 15 2024
For instance, if you own a stock trading at ₹50 per share, you may decide to set your stop loss at 10% below the current market value. This means that you are willing to accept a loss of up to 10% of the stock's value before selling it.
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BlockchainLegendary
Tue Oct 15 2024
To calculate the stop loss price using the percentage method, simply multiply the current market value of the stock by the percentage you have chosen. In this case, ₹50 per share multiplied by 10% equals ₹5.
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CryptoVisionary
Tue Oct 15 2024
Subtract this amount from the current market value of the stock to find your stop loss price. Therefore, in this example, the stop loss price would be ₹50 minus ₹5, which equals ₹45.
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Michele
Mon Oct 14 2024
By setting a stop loss, you are essentially placing a limit on the amount of money you are willing to lose on a particular trade. This can help to protect your investment and prevent significant losses if the stock price suddenly drops.
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