Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to locked in: Locked in Syndrome
To close a position such that the profit or loss from an investment is realized. For example, if an investor buys a stock at $5 per share and the price goes to $10, the investor has a paper profit of $5 per share. However, if the investor waits to sell the stock until the price drops to $8, the locked in profit is only $3 per share. Investors often wait before locking in substantial profits or losses, as locking in a profit may result in higher taxation, while locking in a loss removes the possibility that the investment can be recovered.
To have a large paper, or unrealized, profit in a security position, with the result being that sale of the security would engender substantial taxation.