break-even point

Definitions

Accounting

Economics

  • noun the point where total revenue equals total costs; this is shown in break-even charts, e.g. charting the effect of a price increase or an increase in fixed costs.

Forex

  • (written as Break Even Point)
    The exact price point when a Forex option's cost equals the proceeds received as a result of exercising the option. For a call option, the break even point equals the strike price plus the premium paid, while a put's break even point equals the strike price minus the premium paid.
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