<h2>Break-Even Price</h2>
<p>The <strong>break-even price</strong> is a crucial concept in trading that represents the price level at which a trader neither gains nor loses on a trade. It's the point where the total cost of a trade is equal to its total revenue.</p>

<h2>How It Works</h2>
<p>The break-even price is calculated by dividing the total cost of a trade by the volume traded. Here's the formula:</p>
<table>
<tbody>
<tr>
<td><strong>Break-Even Price</strong></td>
<td>=</td>
<td>Total Cost / Volume Traded</td>
</tr>
</tbody>
</table>
<p>For example, if you've paid a spread of 2 pips on a trade of 1 lot (100,000 units of the base currency) on EUR/USD, your break-even price would be:</p>
<table>
<tbody>
<tr>
<td>2 pips / 100,000 units</td>
<td>=</td>
<td>0.00002</td>
</tr>
</tbody>
</table>
<p>So, the break-even price for this trade would be 0.00002 higher than the entry price.</p>

<h2>Why It Matters for Traders</h2>
<p>Understanding the break-even price is vital for traders for several reasons:</p>
<ul>
<li>It helps set realistic profit targets and stop-loss levels.</li>
<li>It provides a clear reference point for assessing the performance of a trade.</li>
<li>It aids in risk management by helping traders understand their potential loss if the market moves against them.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> platform, you can calculate the break-even price manually or use built-in tools, such as the <strong>Trade Calculator</strong>, to help you determine it.</p>

<h2>Example</h2>
<p>Let's say you've opened a long position on GBP/USD with a spread of 3 pips and a volume of 0.5 lots (50,000 units). Your break-even price would be:</p>
<table>
<tbody>
<tr>
<td>3 pips / 50,000 units</td>
<td>=</td>
<td>0.00006</td>
</tr>
</tbody>
</table>
<p>This means you would need the price of GBP/USD to move 0.00006 in your favor to break even on this trade.</p>

<h2>Key Takeaways</h2>
<ul>
<li>The break-even price is the point at which a trade neither gains nor loses.</li>
<li>It's calculated by dividing the total cost of a trade by the volume traded.</li>
<li>Understanding the break-even price is crucial for setting realistic targets, managing risk, and assessing trade performance.</li>
</ul>