Breakeven
Breakeven is the price at which a trade closes at zero after fees. 'Moving to breakeven' means shifting your stop-loss to the entry price so the trade cannot end in a loss.
How it works
The word has two uses. The first is the breakeven point: the price at which profit covers the fees for entering and exiting. Because of fees it sits slightly above the entry on a long and slightly below it on a short. On futures, funding also shifts it.
The second is a trade management move. Once price has gone your way, you move the stop to your entry (or a little beyond it to cover fees). Now the worst outcome is zero, not a loss. It takes pressure off and protects the trade from a reversal.
Moving to breakeven has a cost. Do it too early and a normal pullback stops you out at zero, then price runs to your target without you. So traders usually move the stop after a meaningful move, such as when price has gone 1R or broken the nearest level.
You buy 1 ETH at $3,000 with a 0.1% fee on entry and exit. The entry costs about $3,003, and you need the same back after the exit fee: breakeven ≈ 3,003 / 0.999 ≈ $3,006. If you move the stop to exactly $3,000 and it is hit, you lose about $6 in fees.
The mistake is moving the stop to breakeven almost right after entry 'to avoid risk'. Price makes a normal pullback, the position closes at zero, and a good trade never gets its chance. Move the stop by a rule in your trading plan, such as after 1R of profit or a level break, and include fees.
Questions and answers
What does moving a trade to breakeven mean?
It means moving your stop-loss to your entry price so the worst case is closing at zero. It is usually done once price has moved in your favour.
How do you calculate the breakeven price?
Add the entry and exit fees (and funding on futures) to your entry price. With a 0.1% fee each way, price needs to rise about 0.2%.
When should you move your stop to breakeven?
By a rule set in advance, such as after a 1R move or a break of a key level. Moving it too early often stops the trade out at zero.
Related terms
Read next
A stop-loss goes where your trade idea stops working, not where the loss feels bearable. Here are two practical ways to find…
Read →Risk per trade: how to size a positionA simple formula that answers "how much should I buy".
Read →Confirmation biasConfirmation bias is the tendency to notice and value information that supports what you already believe and to ignore…
Updated: 2026-10-19