User guide
How to Use RRCalc
RRCalc works for both long and short trade plans. You only need four values.
Step 1: Enter Maximum Risk
Maximum Risk is the largest rupee loss you are willing to accept for the planned trade. This value is saved in your browser so it remains available when you return.
Step 2: Enter Entry Price
Use the price at which you expect the position to be opened. The calculator uses this price to estimate investment value.
Step 3: Enter Stop Loss
For a long trade, the stop loss should be below entry. For a short trade, it should be above entry. The difference between entry and stop loss becomes risk per share.
Step 4: Enter Target
For a long trade, target should be above entry. For a short trade, target should be below entry. The target distance becomes reward per share.
Understanding the results
- Quantity: Maximum whole-number quantity that keeps calculated risk within your limit.
- Investment: Entry price multiplied by quantity.
- Actual Risk: Entry-to-stop distance multiplied by quantity.
- Max Profit: Entry-to-target distance multiplied by quantity.
- Risk : Reward: Potential reward compared with one unit of risk.
Example: Max Risk ₹100, Entry ₹3,142, Stop Loss ₹3,115 and Target ₹3,235 results in quantity 3, actual risk ₹81 and potential profit ₹279.