📖 Financial Lexicon Term
What is Break Even?
The point at which a trade has zero profit and zero loss (excluding spreads and commissions).
Detailed Explanation
Moving a stop loss to 'Break Even' means adjusting it to your exact entry price once a trade is in profit. This creates a 'risk-free trade,' as the worst-case scenario is now exiting with no loss.
💡 Practical Trading Example
Your trade is up $500. You move your stop loss to your entry price to secure a break-even scenario if the market reverses.