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Break-even, or sometimes just breakeven, is actually an important concept within Forex.
It’s important for trading in any security, and for the same reasons. In fact, there is an entire trading strategy that works around it.
Going by the definition, it might seem like a simple idea, but there is an important implication for forex trading that comes from this concept.
Break-even comes from the Break-Even Point (BEP).
What’s that? Well, in terms of price action, it refers to the point where gains equal losses. Simple, right?
Hold on a Second
In Forex, there’s more to gains and losses than meets the eye. We have to take into account risk, because accounting for risk is part of the losses side of this equation that many people forget. How does that work?
So, first, you’ll probably have noticed there are two prices on your trading platform: the sell and buy price. When you enter the market, you...
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