Break even calculation

Discussion in 'Trading' started by Anton Chigurh, Dec 27, 2018.

  1. If any one can help with this is as it's driving me nuts.

    I want to calculate the break even point of 2 positions via a formula.

    For example if I have a long position of 5@1261 and a short position of 3@1251.

    What is the easiest way of calculating break even if the market keeps trending up?

    Thanks
     
  2. tommcginnis

    tommcginnis

    "If a train leaves a station westbound at 45mph, and another....."
    so, set them both in an equation = 0, and then solve.

    More intuitively: put 'em into a ladder:

    3*1251 in one column
    price it up to 1261 (so, 10*300) in a second column (et cetera)

    And then in a third column (5*1261)
    and then in a fourth, price this difference (from 1261) also, up up up up.

    When column two = column four, you're set.

    ( :) Man! That takes ya back, don't it?? :D )