Lock In Profits

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Dictionary Says

Definition of 'Lock In Profits'

Realizing the gains of a position, such as buying a stock, by exiting at a profit. By locking in, that portion of the investment is no longer exposed to risks. All profits are unrealized until the position is closed.

Also known as “realization.”
Investopedia Says

Investopedia explains 'Lock In Profits'

When investing it is important to protect your capital and your profits, this can be done by locking in your profits.

For example, if you bought 100 shares of ABC Company for $12 and the price went up to $36 two days later all potential profits are unrealized because the position isn’t partially or fully closed. You can lock in the profits by selling 50 shares because 50 x $36 = $1,800. If the stock drops to $1, you will have still made a profit.
Search results for

'Lock In Profits'

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    ... 401K, Derivatives, Insurance, Options. Many investors have been in a situation where
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    ... namesake. Another use of this tool, though, is to lock in profits, in which
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  • FX Exit Strategies: Keeping Your Profits

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    ... stop. A third exit strategy may be to lock in profits if the situation
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    ... This may actually result in a wise option seller closing out of the position
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    ... Options, Volatility. Active traders survive because they use initial stop loss
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    http://www.investopedia.com/university/forex-rules/rule1.asp
    ... than one lot. Trailing Your Stops Trailing stops requires work but is probably
    one of the best ways to lock in profits. The key to ...

  • Got A Good Mortgage Rate? Lock It Up!

    http://www.investopedia.com/articles/pf/08/lock-mortgage-rate.asp
    ... This occurs because many lenders include a "cap" with the lock agreement ... Rising rates
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  • IPO Lock-Ups Stop Insider Selling

    http://www.investopedia.com/articles/stocks/07/ipo_lockup.asp
    ... The Reason for Lock-ups As a company goes public, underwriters want to be able to ...
    like that found on the balance sheet, the income statement (profits and losses ...

  • Support and Resistance Levels to Watch

    http://stocks.investopedia.com/stock-analysis/moneyshow/SupportandResistanceLevelstoWatch.aspx
    ... With that in the back of my crowded mind, I try to use smaller position sizes and
    lock in profits aggressively during times of widespread volatility. ...

  • Credit Crisis: Historical Crises | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis2.asp
    ... fell. Anxious to lock in profits, more and more tulip owners rushed to
    sell, leading to a downward spiral in prices. Tulip prices ...

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