stop distance

How far your safety exit is from the price where you entered the trade.

The fuller meaning

The distance from entry to stop, the risk per unit. Position size = money at risk ÷ stop distance, so a wider stop means a smaller position for the same risk; ATR helps set it outside the market's normal noise.

stop distance.

Related words

1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve