LESSON 10 ~11 MIN · AT YOUR OWN PACE
Risk management calculations
Understand Entry, Stop, quantity and planned loss.
STEP 2 OF 4
How do you work out the planned loss?
In a simple cash-share Buy example: (Entry − Stop) × Quantity = planned price loss. This holds only if you are filled at the Stop and there are no costs.
AN EXAMPLE
Entry 100, Stop 95, Quantity 10: (100 − 95) × 10 = 50. With a Quantity of 20, the planned loss is 100.
RememberIf the quantity doubles, the Profit or Loss for the same price movement doubles too.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
Investor.gov · Order types (opens in a new tab)CFTC · Forex and risk (opens in a new tab)FINRA · Day trading risks (opens in a new tab)