Breakeven Point - BEP

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DEFINITION of 'Breakeven Point - BEP'

1. In general, the point at which gains equal losses.

2. In options, the market price that a stock must reach for option buyers to avoid a loss if they exercise. For a call, it is the strike price plus the premium paid. For a put, it is the strike price minus the premium paid.

Also referred to as a "breakeven".

INVESTOPEDIA EXPLAINS 'Breakeven Point - BEP'

For businesses, reaching the break-even point is the first major step towards profitability.

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