Definition For Lock In Profits

Realizing the profits of a position, like buying a share, through exiting at a gain. By locking in, that part of the investment is not subjected to risks. All gains are unrealized before position is closed,

For example, in case you purchase 200 stocks of ABC Firm for Rs 50 and the price bull up to Rs 150 2 days later all potential gains are unrealized because of the position is not partly or completely closed. You are able to lock in the gains by selling 100 stocks because 100 x 150= Rs 1500. If the share falls to Rs 1 you’ll have still made a gain.


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