break-even point
Definitions
Accounting
- noun the point or level of financial activity at which expenditure equals income, or the value of an investment equals its cost so that the result is neither a profit nor a loss.
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.
