# What is Break-even?

What is break-even? The Break-even point in Forex Trading is when your trade is not in loss anymore. If we are talking about the breakeven analysis and feature developed by experts of 4xPip, it allows you to modify the stop loss of your trade in such a way that if the market reverses, the trade is always closed in the profit. We will guide you on how to set a break-even point in forex trading.

## How does it work?

Our Breakeven point formula consists of 3 inputs:

### 1:Allow break-even? (true/false)

Here you can turn this feature on/off.

#### 2: Distance Pips

Profit in pips to activate the breakeven.

#### 3: Lock Pips

Amount of pips where stop-loss is modified in profit so that if the market reverses its direction the trade will always close in profit.

### How to modify Stoploss at Entry Point

To modify the stop-loss exact at the entry point (order open price), set Lock Pips = 0.

Now when the breakeven point will be activated, Stoploss will be modified at the order open price in trading.

### Problem

Often the market tends to move in profit but before it hits the Takeprofit, the market reverses its direction and hits the Stoploss resulting in a Loss ❌

### Solution

Here is the Break-even formula:

Allow Break Even? = true

Distance pips = 10

Lock Pips = 2

• Open Price = 1.0800
• When Market Price Hits open price + Distance which is 1.0800 + 10 pips  = 1.0900
• Breakeven gets activated 🚀
• Stoploss will be modified to open price + Lock Pips which is 1.0800 + 2 pips = 1.0820

Every trade either closes at Stoploss or Takeprofit. In both cases the trade will always close in profit because the new Stoploss is in +2 pips of profit💰 break-even in Forex helps to close trade always in profit. For more information regarding the break-even analysis contact https://4xpip.com/custom-bots. We can add a Break-even point formula into your auto trading robots so that all the trades will always close in profit.