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Glossary

What is break even

What moving the stop loss to break even means, when to do it and what it protects.

Moving a trade to break even (BE) means raising the stop loss to your entry price. From then on, if the price turns around, you exit without winning or losing.

It is done once the trade is already in profit: that way you protect what you have without closing the position, and let it run in case it keeps rising.

Example: you buy at $250 with the stop loss at $247.75. The price rises to $252 and you raise the stop loss to $250. If it then falls, the sale triggers at $250 and you don't lose money, apart from commissions and slippage.

Raising the stop loss too early makes many trades close at break even because of normal price swings. That's why it's best to follow a fixed rule rather than deciding on the fly.

At Reversal Club, the RAISE SL signal tells you when to move the trade to break even, according to the system's fixed rules.

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