Break even

A Wealth of Knowledge

Break even is a phenomenon when one is stopped out of a trade without losing money or making it. This is a risk management strategy employed by traders to protect their equity. For instance one had either bought or sold and the market had moved in their favour. What one can do is to move their stop loss into their entry price (the price level where the trade was taken). This protects one's balance in a sense that should the market reverse against that position the trade will be stopped out but no losses will be incurred.

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