Breakeven

In investing, the breakeven point (BEP or BE) for a trade is determined by comparing the market price of an asset to the original cost; breakeven is when the two prices are equal. Forex Breakeven example: Assume that we buy 1 lot EUR/USD at the ASK price of 1.1300. The trade moves favorably in profit towards 1.1330 (BID price). We then move the stop-loss to 1.1300 (BID price) so that we are not losing anything if price falls back to the entry level. When also calculating the broker fee for that trade, we could even pull the stop to 1.1301 to equal total expenses.