What is Breakeven (BE)?

Moving your stop loss to the entry price once a trade is in profit, so the worst remaining outcome is roughly zero.

Breakeven, in trade management, means moving the stop loss to the entry price once a trade has moved into profit, so that the worst remaining outcome is approximately zero (spread and slippage aside). It converts an open risk into a free position: the market can no longer take back your risked capital, only the unrealised profit. Many desks move to breakeven after a partial close at the first target, letting the remainder run toward a larger objective without ongoing risk.

Breakeven is a tool with a real trade-off. Moved too early — before price has cleared the noise around entry — it converts winning trades into scratches when a normal pullback tags the entry price before the move continues. Moved at a structural point, such as after a break of structure in your favour or after TP1 is banked, it protects capital without strangling the trade. The right rule belongs in your trading plan, decided in advance, not improvised while watching the position tick.