How it works
Every trade starts slightly in the red. The exit needs to cover the entry fee, the exit fee (charged on the exit value) and any funding paid. For a long the break-even sits above entry, for a short below.
Moving the stop to "break-even" at your entry price actually locks in a small loss. Use this number instead when you trail a stop.
Formulas
- Long break-even = (Entry × (1 + entry fee) + Funding ÷ Qty) ÷ (1 − exit fee)
- Short break-even = (Entry × (1 − entry fee) − Funding ÷ Qty) ÷ (1 + exit fee)
Questions traders ask
Why does a stop at entry still lose money?
Because the exchange already charged a fee to open and will charge another to close. Price must move past entry by roughly twice the fee rate.