Trade Logic Unlocked

Break-Even Point Losses

Trade Logic Unlocked

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Every strategy, whether it defined-risk or undefined-risk, will share similar characteristics. Specifically, each strategy will have a profit region, a loss region, and a break-even point. Well, by definition, the break-even point equates to the point of the underlying stock price that should result in a break-even result in the trade. If that is the case, why do some of our positions show a loss, when they hit this break-even point?

Today, we look to ‘unlock the logic’ behind that very question.

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