Exit Strategy Definition

An exit strategy is a trader's predetermined plan for closing a position, whether in profit or loss.

What is an Exit Strategy?

A clear exit strategy typically includes profit targets and stop-loss levels set before entering a trade.

Having a defined exit plan helps remove emotional decision-making from trading.

Setting a take-profit at $110 and a stop-loss at $95 before entering a trade at $100 is an example of an exit strategy.

Earnings per share is a company's net profit divided by its number of outstanding shares.

An economic calendar lists scheduled economic data releases and events that can affect financial markets.

Equity refers to ownership value in an asset after liabilities are subtracted, or the current value of a trading account.