Breakeven

A point in which trade neither makes nor loses money is known as breakdown.
It is also an entry point, a price from where you entered in to the trading position.
It is the level at which the risk on the trade is recovered in terms of price action.
For example, if you buy GBP/USD at 1.4050 and then you close the position at 1.4050 with zero profit and zero loss, you “break even”.
Some traders like to move their initial stop loss price to the original entry price once the current price has moved in their favor.
Here’s a real-world example:

  • You buy GBP/USD at 1.4050

  • You set an initial stop loss at 1.4010.

  • Price rises to 1.4090.

  • You change stop loss to 1.4050 (breakeven level).

  • If the price falls back to 1.4050, your trade neither makes a profit nor a loss. It is a breakeven trade.


How to Calculate Breakeven Percentage


The formula to calculate the breakeven percentage is given below:
Breakeven % = (Stop Loss / (Profit Target + Stop Loss)) x 100

 

A

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B

Bag | Bag Holder | Bahmas Dollars | Bahrain Dinars | Bail In | Bail Out | Balance Of Trade | Baltic Dry Index | Bangladesh Taka | Bank Levy | Bank Of Canada BOC | Bank Of England BOE | Bank Of International Settlement BIS | Bank Of Japan BoJ | Bank Run | Bank Run | Banking Institutions | Bar Chart | Barbados Dollars | Base Currency | Base Rate | Basing | Basing Point | Bear | Bear Flag | Bear Market | Bear Trap | Bearish | Binary Options | Bitcoin Cash | Bitcoin Maximalist | Bitcoin Or BTC | Block | Block Explorer | Block Header | Block Height | Block Reward | Blockchain | Blue Chip | Bolivia Bolivianos | Bollinger Bands | Bond | Bond Auction | Bond Yeild | Book | Boris Schlossberg | Botswana Pulas | Brazilian Brazil Real | Breakdown | Breakeven | Breakout | Brent Crude | Bretton Woods Agreement Of 1944 | BRIC | Broadening Formation | Broker | BTD | BTFD | Bucket Shop | Bulgarian Leva | Bull | Bull Flag | Bull Market | Bull Trap | Bullish | Bullish Engulfing Pattern | Bundesbank | Burundi Francs | Business Inventories | Buy Side | Buying Pressure


C

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E

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