**How to Close a Trade Without a Loss: Break-Even Stop Mechanism**
Break-even stop (Stop Loss to Break-Even) — is one of the most important risk management tools, which I often mention in my trading signals. Let’s understand how it works through a practical example.
**Understanding Commission Costs**
When you open a position on an exchange, each transaction incurs a fee. In our case, the fee is 0.01% both when opening and closing the trade. This means that even if the price returns to the initial level, you will still incur a loss due to these expenses. For example, with a $MKR trade at 1098.5
Break-even stop (Stop Loss to Break-Even) — is one of the most important risk management tools, which I often mention in my trading signals. Let’s understand how it works through a practical example.
**Understanding Commission Costs**
When you open a position on an exchange, each transaction incurs a fee. In our case, the fee is 0.01% both when opening and closing the trade. This means that even if the price returns to the initial level, you will still incur a loss due to these expenses. For example, with a $MKR trade at 1098.5
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