December 28th, 2008
Metatrader Overview. Break Even.
Break Even is a special logic to save profit while trading Forex. Break Even allows to close order when loss is on zero point.
Break Even is a special case of Trailing Stop. The difference is that the Stop Loss value is set only once when the required level is reached and it does not change any more till the order is closed. Break Even allows to fix Stop Loss value at the break-even point. To make a newly opened order reach the break-even point, it has to surmount the spread which is a distance between purchase price and selling price. After this, the Stop Loss value needs to be fixed in this point. In this manner, if the price turns in the opposite direction then the order is closed with zero losses.