Exit Strategy

An Exit Strategy is a planned approach to ending an investment, business, or trading position in a way that maximizes profit or minimizes loss. It defines how and when an investor, entrepreneur, or trader will withdraw from a project, position, or company.

In investing and trading, an exit strategy helps determine the right time to sell — either when a target profit is reached or when losses hit a predefined limit (using tools like stop-loss and take-profit). It ensures decisions are made rationally, not emotionally.

In business and startups, an exit strategy outlines how founders or investors will eventually realize returns — for example, through mergers and acquisitions (M&A), initial public offerings (IPOs), or selling equity stakes.

A solid exit strategy provides clarity, discipline, and financial security. It’s not about quitting — it’s about knowing when to move on strategically. Whether in trading or entrepreneurship, a well-defined exit strategy separates professionals from gamblers.