Economics

Break-even Definition

Break-even Definition

Break-even Point is the point at which gains equal deficits. In options break-even signifies, the market price which a stock must grab option buyers to prevent a loss as long as they exercise. For a call, it is the strike price as well as the premium paid. To get a put, it is the strike price minus the premium paid. The term originates in finance, but the concept may be applied widely since.