ExitPreis

ExitPreis, literally the German term for “exit price,” denotes the price at which a market participant closes a position in a security, derivative, or other financial instrument. It is the execution price of the closing trade and may be realized as a market or limit price, depending on how the position is closed.

In trading contexts, the exit price is used to realize profits or losses on a trade. The realized P&L for a long position equals (exit price minus entry price) times quantity minus commissions and fees; for a short position, it equals (entry price minus exit price) times quantity minus costs. The exit price can differ from the last traded price due to slippage, execution quality, and changes in market conditions between order placement and fill.

Calculation considerations vary by instrument. For straightforward trades, the exit price is the price at which the closing order is filled. For multi-leg or partial closes, it may be the average fill price or a weighted average across fills; in futures or options, it can reflect the price of the closing transaction or the result of a closing delta hedge.

Factors influencing the exit price include liquidity, order type, market depth, bid-ask spread, and transaction costs. Slippage tends to be more pronounced in volatile or thinly traded markets. Taxes and accounting rules may also affect how exit price is treated for reporting and performance measurement.

In private markets, ExitPreis is used to describe the exit value or proceeds from selling an investment, such as a private equity, venture capital, or real estate exit, influencing the realized return on investment.