What is the break-even point?

[Ivo Zetticci]

In Forex trading, the break-even price is the price at which the position is settled with zero profit and zero loss. Traders use this term in hedging strategy. The Break-even point is when the trading position returns to the entry point so that it recovers from its variable loss. I also use hedging strategy at Eurotrader, unlike many brokers that don’t allow this kind of strategy.

 

[Samuelkanu]

It is good to break even when you are in a trade. This allows you to have minimum losses for every trade you place. However it can make you to exit a profitable trade early enough because of how volatile the market is. Most good traders like to break even when there's a little pip difference in their trading so as to have risk free trades.

 

[Robson Dey]

As a newbie, you can learn the technique by creating a demo account. It will help you to find out the problem what you are facing while trading. It also helps to reduce your losses and create an opportunity to increase your profit. I also started my trading career through a demo account of Forex4you. Really it helped me to understand my fault in trading.