Exit Price
The exact market price at which an open trade is closed.
Plain-English Meaning
The exit price is the finish line of your trade. It is the moment you close your position and convert your paper gains or losses into finalized, realized cash in your account balance.
Why It Matters
Your exit price dictates the final outcome of the trade. The absolute difference between your Entry Price and your Exit Price determines exactly how much you won or lost.
Simple Example
If you bought a crypto token at an Entry Price of $100 and decided to close the trade later when the market hit $120, your Exit Price is $120. The $20 difference is your realized outcome.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Failing to plan an exit price before opening the trade. Entering a trade without knowing exactly where you plan to exit (both for a win and for a loss) often leads to emotional decision-making.