Entry Point

Categories: Trading, Stocks, Bonds

We're pretty confident you'd figure this one out on your own eventually. But since we're committed to giving you these definitions anyway, we might as well spell it out.

In finance, an entry point is the price where you enter an investment. That is to say, where you buy the stock, or the bond, or the option, or the rare Beanie Baby, or whatever you happen to be investing in.

So you buy shares in Indoor Only Outlet Inc. at $20 a share. It rises to $28 a share before dipping back down to $25. You decide to sell your position in order to pay for your vacation to Tierra del Fuego. Your entry point is $20...your exit point is $25. $5 profit per share.

Entry point has nothing to do with anything that happens in the back seat of a car anywhere. We're just not that kind of site.

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