Trading
Breakeven
The point where a trade has zero profit or loss.
Full Definition
Breakeven is the price level at which a trade would close with no profit or loss, accounting for spread and commission. Moving a stop loss to breakeven after a trade moves in your favor is a common risk management technique that eliminates the possibility of loss on that trade.
Example
You buy at 1.1000 with a 20-pip stop. Price moves to 1.1030. You move your stop to 1.1000 (breakeven). Now if price reverses, you exit at zero loss instead of -20 pips.
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