Forex glossary
Break-Even
A price or win rate at which the specified model's net result is zero after included costs. The entry price is not necessarily the break-even price.
Illustrative example
How does it work in practice?
In a hypothetical model, you buy 100 units at 10 USD per unit and pay 5 USD in total entry and exit fees. An actual exit price of 10.05 USD per unit breaks even; exiting at 10 USD per unit leaves a 5 USD loss.
A case to work through
Costs on a short position
Model: sell 200 units at 12 USD; total costs are 8 USD and fill prices already include spread.
- Cost per unit is 8/200 = 0.04 USD.
- Repurchasing at 12 − 0.04 = 11.96 USD covers those costs.
What follows? Assess the threshold using costs and position direction.
Example boundary: Do not subtract a spread already included in fills again.
Short-position break-even
Text description of the diagram
- Cost per unit: 8 USD / 200 = 0.04 USD.
- Adjustment direction: For a short, reduce the repurchase price.
- Zero-result threshold: 12 − 0.04 = 11.96 USD.
A useful distinction
Break-Even / Take profit (TP)
Take profit is an exit instruction; break-even is a calculated zero-result level.
Check your understanding
Find the zero-result repurchase price for a short position.
Show the answer and explanation
19.94 USD
A 100 × 0.06 = 6 USD price gain covers costs.
Net results and risk measures
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Related terms
Sources and documentation
- MetaTrader 5: executing trades
Execution modes, requotes, position handling and local trailing on this platform.
Document read: - MetaTrader 5: basic trading principles
Orders, deals and positions; FOK, IOC and partial-filling policies.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.