Exit
In margin trading like forex, the operation of closing a position (position or trade) is referred to as Exit, also known as "Closing a Position".
This article will explain the meaning of Exit.
Meaning of Exit
Definition
Exit refers to ending a trade. In margin trading, it specifically refers to processing a position by closing the held financial product.
The opposite of Exit is opening a position (entry).
Forex trading starts with Entry (establishing a position) and ends with Exit (closing a position).
Financial Products That Use "Exit"
Exit is not only used in forex and other margin trading but also frequently used in derivative financial products, as well as in corporate mergers and acquisitions (M&A).
In Derivative Financial Products:
Forex (Forex Margin Trading)
Futures Trading
Options Trading
However, in fields like stock investing, this term is not used. In stock trading, terms like "selling stocks" or "buying stocks" are commonly used instead.
Examples of Using "Exit"
Exit refers to ending a trade, regardless of whether the position was a buy (long position) or sell (short position).
Sometimes, it is also combined with other terms, as shown in the table below:
| Term | Meaning |
|---|---|
| Exit Price | The price at which the position is closed |
| Exit Timing | The timing at which the position is closed |
| Exit Rules | The rules and conditions for closing a position |
Frequently Asked Questions About Exit
Here are some common questions regarding Exit.
What is the difference between Exit and opening a position (entry)?
Opening a position refers to buying or selling a financial product to establish a new position, and it is the opposite of Exit.
Forex trading starts with opening a position (establishing a position) and ends with Exit (closing the position).
Summary: What is Exit | The Meaning of "Exit" in Forex Trading and FAQs
Exit refers to ending a trade. In forex trading, it specifically means closing the position (or trade) held. However, this term is not used in fields like stock trading.
Forex trading starts with opening a position and ends with Exit.
