L'INFORMATEUR CRYPTOHome › Glossary › Break-even (BE)
Break-even (BE): definition
Moving a position to break-even means raising its stop loss to the entry price: the trade can no longer lose.
Definition
Break-even (BE) is the price at which the position neither gains nor loses. “Moving to BE” means moving the stop loss to that level.
When to do it
A common rule: move to BE once the trade reaches +1R, i.e. a gain equal to the initial risk, or after the first take-profit. The risk is then zero, but the trade can be stopped out by a simple pullback.
Frequently asked questions
Is BE always a good idea?
It protects capital but can take you out of a good trade too early. Some traders wait for a new high or low before raising the stop.