Break Even Point (BE or BEP)

The break -even point is when, after taking into account transaction costs, our revenue equals our financial costs. Reaching the break-even point in a company means being at the point where the company is neither at a loss nor making a profit. The break-even point value can be given in both quantitative and quantitative terms. An example of the latter approach would be to try to estimate the number of products a company must sell to be at the break-even point.

 

What is forex breakeven?

In the case of Forex, breakeven means the point at which we can close our position without incurring a loss and at the same time without a profit. When calculating the breakeven point for our position, we should take into account both the opening price of the position and all related transaction costs.

An indicator of what is BEP?

By calculating the BEP for our transaction, we can consider it an indicator of profitability for our investment. In case the price of the asset has increased so much that we are above the breakeven point, it means that the asset is profitable. On the other hand, if we are below the BEP, it means that the position is making us a loss at this point.

BEP a Stop Loss

Many traders use BEP to determine where they set a stop loss when the value of their investment momentarily is higher than when they bought it. By doing so, they ensure that the position is no longer closed at a loss.

What does BEP stand for?

In English-language literature, the break-even point is denoted as BEP or break even point.

What is a break-even point in a company?

The break-even point is the achievement of a situation in a company in which revenues fully offset costs and do not exceed them. Thus, in practice, it means a situation in which the company makes neither profit nor loss.

Break-even versus break-even.

Although the concept of break-even is much more common in economics, some sources also cite break-even. In practice, the two concepts are the same.