Break Even Point (BEP)

The Break Even Point (BEP) is a financial concept that represents the point at which total costs equal total revenue, resulting in neither profit nor loss. In the context of trading or investing, the break-even point is the price level at which an asset must reach for a trade or investment to neither make a profit nor incur a loss. 

Calculating the break-even point is essential for traders and investors to assess the risk and potential profitability of their positions. By determining the break-even point, traders can establish a target price that needs to be reached for a trade to be profitable. Understanding the break-even point helps traders set realistic expectations, manage risk effectively, and make informed decisions when entering or exiting positions in the financial markets.