An abbreviation for Break Even, referring to the price level at which a trade generates neither a profit nor a loss after accounting for entry price and any associated costs such as commissions or spreads. Traders frequently move their stop-loss order to the break-even point once a position has moved sufficiently in their favor, a technique known as trailing to BE, which eliminates downside risk on the trade while allowing the remaining position to run. This risk management practice is especially common among swing traders and position traders seeking to protect capital.
Example
“After price moved 2R in her favor, the trader moved her stop to BE so that the worst-case outcome on the trade was zero loss.”