How much extra dollar risk am I taking on if I widen my stop-loss after entering the trade?

How this is calculated

• Original dollar risk equals shares multiplied by the distance between your entry price and your original stop. New dollar risk uses the same math with your new stop price.
• Extra dollar risk is the new dollar risk minus the original dollar risk. If the new stop is actually closer to your entry than the original, this number comes out negative, meaning you tightened risk instead of widening it.
• Moving a stop-loss further away after you're already in the trade changes the risk profile you originally sized the position for.
• This tool only tells you what widening costs in dollar terms. It does not tell you whether widening is the right decision on this particular trade. Pair it with a written rule for when moving a stop is acceptable versus rationalizing a losing position.
• Works for both long and short positions. Only the distance between entry and stop matters for this calculation.