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PERCENTAGE SL

Fix percent below entry.

Published by The Retail Trader · JUL 31, 2026 · Risk Management

Percentage SL — fix percent below Entry. It is simple, but it completely ignores the volatility of the stock.

WHERE THIS FITS IN

This term comes under Risk Management, in the section "Where to put STOP LOSS". Placing stop loss and placing it at the right place are two different skills. Here are his methods and their trade-offs:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Structure-Based SL
• ATR-Based SL
• Time-Based Exit
• Volatility Stop
• Tight vs Wide SL
• SL Hunting
• Gap Through SL
• SL-M in Fast Market
• No-Trade Zone

To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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