Break Even Stop
A break even stop is a stop loss moved toward the trade's entry or economic break even area after the position has moved favorably.
Why it matters to you
Moving a stop to break even can reduce the original downside risk. But doing it too quickly can also cause a position to be closed during ordinary market movement before the trade has had room to develop. Break even management should therefore form part of a defined trading process rather than being an automatic emotional reaction to seeing temporary profit.
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