Breakeven
Moving the stop loss to the entry price so the trade can no longer lose money, apart from costs. It is often done after the first target is hit.
In practice
After TP1 is hit, the stop is moved to the entry price. If the market reverses, the remaining position closes at roughly zero, apart from spread and commission.
Moving to breakeven too early. A stop placed exactly at entry is often hit by a routine pullback.
Related terms
Trailing stop
A stop loss that follows price by a set distance as the trade…
Take profit
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Partial close
Closing part of a position to bank profit while leaving the rest…
Trade management
What happens after entry: taking partial profit, moving the stop…
Buy limit
A pending order to buy below the current price, used to enter on a…
Buy stop
A pending order to buy above the current price, used to enter on…