Exit Price

Exit Price refers to the price at which an investor, trader, or business decides to sell an asset, investment, or position — effectively marking the “exit” point of a trade or deal. It represents the amount that would be received if the asset were sold under normal market conditions.

In financial markets, the exit price plays a critical role in realizing profits or minimizing losses. Traders set exit strategies — such as stop-loss and take-profit levels — to determine in advance when to close a trade based on risk tolerance and target returns. In business valuation and accounting, exit price also refers to the fair value an asset could fetch in an orderly transaction between market participants on a specific date (as defined by IFRS 13).

Understanding exit price helps investors make rational decisions, avoid emotional trading, and apply risk management techniques effectively. It’s a cornerstone concept in portfolio management, valuation, and strategic investment planning — knowing when and how to exit is as important as when to enter.