Scroll Top

search-icon
    drop-arrow

    Exit Point

    What Is an Exit Point?

    An exit point is a price an investor or trader must close a position at. Usually, an investor would sell to exit their investment while they buy long-term assets. A trader can sell at an exit point, or if they are short, can buy to close the gap.

    The exit point can be calculated in advance, depending on the plan of a trader or investor. Or, it is possible to determine the exit point on the basis of real-time market conditions or life criteria such as liquidating other assets to pay a bill.

    Understanding the Exit Point

    Often an exit point is prepared, and an order is sent to activate the exit. Depending on how the price went after purchase, the exit point may result in a profit or loss. It is possible to use exit points to manage the risk of failure and also to set benefit objectives. Conditional instructions are typically used by investors to set exit points.

    A bracketed buy order is one example of an exit strategy that incorporates premeditated exit points at the initial investment period. A bracketed purchase order is a conditional order which includes both a profit target as well as an exit stop loss point. In a bracketed purchase order, an investor purchases a safe, then, sets a profit target order at a specified price to lock in a benefit.

    The stop loss will be set at a specified price to minimize risk in the event that the price moves in the opposite direction of the investor expectation. If one of the commands is hit, the other is cancelled because the location is closed now. The investor may vary the price of the stop-loss order and the benefit goal order depending on their risk tolerance and investment expectations.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption