How to put stoploss of 1lac capital?

To set a stop-loss for a ₹1 lakh capital, you'll need to consider the following factors: 1. Risk Percentage: Determine the percentage of your capital you're willing to risk. A common range is 2-5%. 2. Stop-Loss Percentage: Decide on the percentage of the trade value you're willing to risk. This will depend on market volatility and your trading strategy. 3. Position Sizing: Calculate the position size based on your risk percentage and stop-loss percentage. Here's an example: Suppose you want to trade with: - ₹1 lakh capital - 2% risk percentage - 5% stop-loss percentage Calculations: 1. *Risk Amount*: ₹1 lakh x 2% = ₹2,000 2. *Stop-Loss Value*: ₹2,000 / 5% = ₹40,000 3. *Position Size*: ₹40,000 This means you can take a position worth ₹40,000 with a stop-loss of ₹2,000 (5% of ₹40,000). If the trade moves against you, your loss will be limited to ₹2,000. Keep in mind that this is a simplified example. You should consider other factors like market volatility, trading strategy, and risk management techniques to adjust your position sizing and stop-loss levels accordingly.

Comments