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A break-even price describes a change of value that corresponds to just covering one's initial investment or cost. Traders may use break-even prices to understand where a securities price must go to make a trade profitable after costs, fees, and taxes have been taken into account.
The Breakeven Stop strategy uses the PowerLanguage keyword [[SetBreakEven]] to place an order to exit all shares or contracts in all positions once a specified profit floor has been reached. The profit floor can be set on a total position basis, or on one contract/one share basis. The profit target amount is determined by the FloorAmt input. When the profit exceeds the breakeven profit floor, a stop exit order is generated at the entry price of the position plus the commission specified. Check the related article on [[Strategy Properties]] for more info. The stop orders are stop market orders. If the price falls back to the entry price, a market order is generated and sent into the market. Breakeven Stop can be used to close both long and short positions.
The Breakeven Stop strategy only takes effect once a certain level of profit is reached, so it is possible that in a given position, it may never take effect. Check the related articles on [[Breakeven Stop LX]] and [[Breakeven Stop SX]].