To help followers and Lead Traders better understand the actual P&L of their current positions, Toobit Copy Trading now supports the breakeven price. This article explains what the breakeven price means, how to view it, and FAQs.
What is the breakeven price in Copy Trading?
The breakeven price is the theoretical price at which a position reaches breakeven after accounting for realized P&L, opening and closing fees, and funding fees.
The breakeven price is recalculated when you add to or reduce a position or realize P&L, based on the latest P&L and associated costs.
For long positions, the breakeven price may be negative, meaning that the profits already realized from the position are enough to cover the associated costs. For short positions, a negative breakeven price is also normal and indicates that the theoretical breakeven price is below 0.
What is the difference between the breakeven price and the average entry price?
The average entry price reflects the average execution price of the current position and is mainly determined by the execution prices when opening or adding to the position.
The breakeven price also takes into account realized P&L, opening and closing fees, and funding fees. It reflects the theoretical price at which the overall position reaches breakeven.
As a result, the breakeven price may differ from the average entry price and may change as the position, P&L, or associated costs change.
How to view the breakeven price?
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Followers: Go to [Copy Trading] → [My copy trades] → [Current copy trades] and view the breakeven price in the current position details.
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Lead Traders: Go to [Copy Trading] → [Current lead trades] and view the breakeven price in the current position details.
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View a Lead Trader's positions: Copy Traders can go to [My Lead Trader] → [All trades] → [Current trades] to view the breakeven price of a Lead Trader's current positions.
Hover over breakeven price or click the information icon next to it to view more details.
How can I use the breakeven price to assess my position's P&L?
In general:
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Long positions: If the current price is above the breakeven price, the position is in overall profit. If the current price is below the breakeven price, the position is in overall loss.
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Short positions: If the current price is below the breakeven price, the position is in overall profit. If the current price is above the breakeven price, the position is in overall loss.
The breakeven price represents the theoretical breakeven point after accounting for realized P&L and associated costs. It should not be used solely to compare the current price with the average entry price.
FAQs
1. Why does the breakeven price change?
When you add to or reduce a position, partially close a position, or generate realized P&L, trading fees, or funding fees, the overall P&L and costs of the position change. As a result, the breakeven price is adjusted accordingly.
The breakeven price may change due to realized P&L or associated costs even when the average entry price remains relatively unchanged.
2. Why can my position still be below breakeven when my unrealized P&L is positive?
Unrealized P&L reflects the floating P&L of the remaining position and does not represent the overall P&L after accounting for realized P&L and associated costs. If the current unrealized profit is not enough to offset previous losses and associated costs, the position may still be below breakeven.
3. Why can the breakeven price be negative?
A negative breakeven price is a theoretical result calculated based on the position's realized P&L and associated costs. It does not mean that the market price of the underlying asset can become negative or indicate an error in the system.
For long positions, the breakeven price may be negative, meaning that the profits already realized from the position are enough to cover the associated costs. For short positions, a negative breakeven price is also normal and indicates that the theoretical breakeven price is below 0.
4. Why is the breakeven price different for followers and Lead Traders?
Copy orders are executed based on the Lead Trader's trading activity, but followers' and Lead Traders' orders are executed separately. Differences in execution price, position size, realized P&L from previous closes, and associated fees may result in different position costs and P&L. Therefore, their breakeven prices may also differ.
5. Does the breakeven price affect my position or order execution?
No. The breakeven price is for reference only. Displaying this indicator does not affect the actual entry price, liquidation price, or order execution, and does not trigger any position increase, reduction, or closing. Do not use the breakeven price as the basis for assessing liquidation risk.
Risk disclaimer
The breakeven price is for reference only. Actual trading results may be affected by market volatility, liquidity, slippage, and applicable fees. Please refer to the final execution and settlement results.
If you need further assistance, please contact our Support Center.
