Break-even

What does break-even mean?

In trading, the term of break-even is used to say that the total revenue covers the total costs, i.e. no profit is made after deducting all fixed costs. Fixed costs include, amongst other things, order fees, financing costs, data feed, etc. The capital gains tax of 25% also must be included in the calculation. If the break-even point is exceeded on the upside, the value is positive; if the value falls below the break-even point, the value is negative. The point where the break-even point and the loss threshold intersect is called the break-even point (BEP).