Break Even, what do you use? How do you calculate? - Aussie Stock Forums

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  1. #1

    Default Break Even, what do you use? How do you calculate?

    Hi all,

    Probably a very easy question to many, but how do you go about calculating your break even point?
    Do you go by the value the currency is currently at or by your pips (same applies to the stock traders, value or shares).

    Also, do you move your stop loss so its tighter and obviously under/over your entry (depending if you're short/long).
    Or do you just close off half your position and then maybe bring your stop closer?

    Just need some general insight to the break even point, how its calculated and what you prefer to use.



  2. #2

    Default Re: Break Even, what do you use? How do you calculate?

    My method will be different to others, and rightly so as in the big picture this is what provides liquidity.

    No real calcs for me, as I know algos and HFT are rife throughout most markets now, and many are based on taking out positions 'calc'd up by the average trader'.

    My B.E. is nearly always a live choice based on probability and likelyhood of the market direction moving in my favour, if I use one at all.

    Depends on what markets you are talking about also, I only trade FX, Indexes and Commodities.


  3. #3

    Default Re: Break Even, what do you use? How do you calculate?

    B/E is the point where your sell price = your buy price.
    + brokerage.

    If trading is above your buy price then a stop at
    your buy price will place you at B/E if hit.
    + brokerage costs.

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