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RISK · BREAK-EVEN STOPS

Break-Even Stops: A Worked Crypto Example With Fees Included

Moving a stop to entry is called 'break-even', but at the entry price you still pay two fees and some slippage. A true break-even stop sits slightly beyond entry.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

A break-even stop moves the stop to where the trade loses nothing after costs. At the entry price itself you lose the round-trip fees: long 1 BTC at $60,000 with 0.05% taker fees costs about $60 to enter and exit at $60,000. The fee-adjusted break-even is entry × (1 + f) ÷ (1 − f) ≈ $60,060 for a long, plus any expected slippage (≈ $60,070 with $10). Moving stops to break-even too early also raises the chance of being stopped by noise; decide the trigger in advance.

Worked example

StepValue
Entry1 BTC long at $60,000
Round-trip fees at entry price≈ $60
Stop at entry: result≈ −$60 (+ slippage)
Fee-adjusted BE60,000 × 1.0005 ÷ 0.9995 ≈ $60,060
Plus $10 slippage≈ $60,070
Short sideentry × (1 − f) ÷ (1 + f)
Result if stopped ($)Result if stopped ($): Stop at $60,000 -60 $; Stop at $60,060 +0 $; Stop at $60,070, $10 slip +0 $.RESULT IF STOPPED ($)Stop at $60,000$-60Stop at $60,060$+0Stop at $60,070, $10 slip$+0
Only the fee-adjusted stop is truly flat. Original ChartsPod editorial graphic.

When to move it

A trigger such as 'after price reaches +1R' or 'after a closed bar beyond structure' is testable; moving the stop by feel is not. Each choice changes how often winners are cut early, which shows up in the journal as many near-zero trades.

Break-even stop sequence (illustrative)Break-even stop sequence (illustrative): ENTRY: $60,000, stop $59,400; +1R: Price $60,600; MOVE: Stop to $60,070; PULLBACK: Stopped ≈ flat.ENTRY$60,000, stop $59,400+1RPrice $60,600MOVEStop to $60,070PULLBACKStopped ≈ flat
The stop covers costs, not just entry. Original ChartsPod editorial graphic.

Conclusion

Related: Partial Profit-Taking: A Worked Crypto Example With Fees Included, Break-Even Win Rates: A Worked Crypto Example With Fees Included.

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A break-even stop moves the stop to where the trade loses nothing after costs.

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Questions readers ask

Is a stop at entry break-even?

No; you still pay round-trip fees and slippage.

What's the formula?

Long: entry × (1 + f) ÷ (1 − f).

When should I move to break-even?

On a predefined trigger you can test.

Sources and methodology

Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).

  1. Bybit: Liquidation process — mark price and margin modes.
  2. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.