Уровень безубытка (безубыток, бу)

What is Breakeven?

Breakeven (Breakeven level, BL) - Transferring a StopLoss order in an open trade to the level of the opening price, after the price has passed in the desired direction a certain number of points.

How do I make a deal Breakeven?

To limit potential losses when opening a position, the trader puts StopLoss order. If the situation on a currency pair is assessed and analyzed correctly and after opening a position the price moves in the right direction, the trader can avoid losses in case of a price reversal in the opposite direction. To do this, the stop-loss order is moved to the level of transaction opening.

What is breakeven
Example of an open transaction

In order to move the stop-loss on the level of opening of the trade or, as traders say, to move the trade to Breakeven, in the MetaTrader 4 terminal it is necessary to modify the stop-loss order by setting the value of the opening price of the position in the corresponding field.

What is breakeven
Transferring a trade to Breakeven

If the price, not reaching the take profit level, for some reason turns around, the position will be closed at the opening price, or closed at breakeven, saving the trader from losing money.

What is breakeven
Transaction placed at breakeven

How to correctly set the Breakeven level?

Often traders, especially beginners, rush to breakeven as soon as the price passes the minimum number of points from the opening level. As a consequence, in case of price fluctuations the deal is closed at Breakeven, after which the price continues to move in the right direction. As a result, a potentially profitable trade is closed without a loss, but without profit, and especially reckless traders hurry to reopen the position, but at a less favorable price, thereby increasing their trading risks.

There are no exact instructions on when to move the stop loss to the breakeven level. It depends on the volatility of the currency pair being traded, the time frame being used and the type of trading. As a rule, each trader selects these levels independently, experimentally, using Fibonacci levels, fractals, Pivot levels or any other technical tool.

How to make breakeven profitable?

If the trade is set to breakeven, even the triggering of a stop-loss order can bring profit. For this purpose, in case of further price movement in the right direction, the stop-loss order is also moved in the same direction. Thus, if the price reverses in the opposite direction, the transaction is closed by the stop loss, but at the same time the trader receives some profit.

What is breakeven
Moving a stop-loss order from the breakeven level to the profit zone

In the example on the picture, in case of price reversal and closing the position at stop-loss, the trader will receive 1.13291 (opening price) - 1.13112 (level of transferred stop-loss) = 179 pips profit.

Trader can transfer a stop-loss order either manually or using the built-in terminal function trailing stop.

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