پنجشنبه ۱۶ شهریور ۰۲ | ۲۲:۴۳ ۱۰ بازديد
What is the stubborn price or break even in the forex market?
The break even price in the forex market is the amount of money or change in value. for which the asset must be sold. To cover the costs of acquiring and owning it. It can also refer to the amount of money that must be paid to sell a product or service in order to cover the cost of producing or providing it.
In options trading, the breakout price is the price in the underlying asset at which investors can exercise or capture the contract without loss. (Bid-Ask spread in the forex market)
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Key points of break even in the forex market
Price volatility describes the change in value. which only includes the investment or the initial cost of the person.
For an option contract, the strike price is that level in the underlying security even when the premium covers an option.
In production, the break-even price is the price at which the cost of producing the product is equal to its selling price.
Break even pricing is often used as a competitive strategy to gain market share, but a break even pricing strategy can lead to the perception that the product is of low quality. (What is the forex market?)
break even in the forex market
Understanding stubborn prices
Almost any transaction can have outrageous prices. For example, the asking price of a house is the sale price where the owner can pay the interest paid on the purchase price of the house. Covering mortgages, hazard insurance, property taxes, maintenance, improvements, closing costs and selling real estate. Commissions At this price, the homeowner won’t see any profit, but they won’t lose any money either.
Breakdown pricing is also used in managerial economics to determine the costs of scaling product production capabilities. Normally, the increase in the volume of production of products means a drastic decrease in prices. Because the costs are divided by the larger amount of the product.
Traders also use breakeven prices (to know where a security’s price needs to go after fees, charges, and taxes are taken into account to trade profitably.)
Uniform price formula
The break-even price is mathematically the amount of monetary receipts. which is equal to the amount of monetary participation. With sales matching fees, the associated transactions are said to be staggering. No loss and no profit in this process. To set a breakout price, a person simply uses the total cost of a business or financial activity as a target price for selling a product, service, or asset, or trading a financial instrument with the goal of breaking even.
For example, the break even price for selling a product is the sum of fixed unit cost and variable cost. which is incurred to produce the product. So if the cost of producing a product is 20 dollars in total. If it sells for exactly $20, that’s the final price. Another way to calculate gross profit for a company is to get the gross profit margin divided by total fixed costs:
Business profitability = gross profit margin / fixed costs.
For an option contract, such as a call or a deal, the break even price (in the forex market) is the level of the underlying security. which fully covers the option premium (or cost). Also known as break-even point (BEP), it can be represented by the following formulas for a call or put, respectively:
BEPcall = strike price + premium paid
BEPput = strike price – premium paid
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Uniform pricing strategy
Break even pricing is more common as a business strategy in new business ventures, especially if a product or service is not significantly different from competitors’ products. By offering a relatively low hard price without any margin, a business may have a better chance of gaining more market share, even if this comes at the cost of not being profitable at the time.
Being a cost leader and selling at breakeven prices requires a business to have the financial resources to sustain periods of no revenue. However, after establishing market dominance, a business may begin to raise prices when weaker competitors are no longer able to undermine its higher pricing efforts.
The following formula can be used to estimate the break-even point of a company:
Fixed costs / (price – variable costs) = break-even point per unit.
The break-even point is equal to total fixed costs divided by the difference between unit price and variable costs.
Uniform price effects
Dealing with high prices has both positive and negative effects. In addition to gaining market share and eliminating existing competition, failure pricing even helps create a barrier for new competitors to enter the market. Ultimately, this leads to market position control due to reduced competition. (What is cryptocurrency?)
However, the relatively low price of a product or service may create this impression. that the product or service may not be as valuable. which can be an obstacle to increase the price later. If others engage in a price war, head-to-head pricing will not be sufficient to control the market. With prices racing to the bottom, losses can be incurred in case of failure.
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