Profit taking

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Related to Taking Profit: Profit Taking Strategy

Profit taking

Action by short-term securities traders to cash in on gains created by a sharp market rise, which pushes prices down temporarily but implies an upward market trend. See: Ring the [cash] register.

Profit Taking

The act of selling a large quantity of security immediately after it has spiked in price, such that the seller will realize a great deal of capital appreciation. For example, suppose one buys a security at $5 and it suddenly rises to $15, and an investor sells the security. If enough investors do this, it can cause a significant, but temporary, drop in price. However, technical analysts see it as a signal of an uptrend. It is also called taking profits.

profit taking

The general widespread selling of securities or of a particular security after a significant price rise as investors realize, or take, their profits. Although profit taking depresses prices, it does so temporarily. The term usually implies that the market is trending upward. Also called taking profits.

Profit taking.

Profit taking is the sale of securities after a rapid price increase to cash in on gains.

Profit taking sometimes causes a temporary market downturn after a period of rising prices as investors sell off shares to lock in their gains.

References in periodicals archive ?
Perhaps because of the increasing availability of broker research on the internet, they are taking profits and reinvesting rather than following the herd.
According to the survey, 72 per cent of German investors, 84 per cent of UK investors and 52 per cent of French respondents plan to focus their investment teams more on taking profits and rebalancing portfolios.
Louis also induced selling, with some investors taking profits in recent gainers, briefly pushing down the Dow more than 110 points, they added.
First of all, there is evidence that the early, more aggressive hands among foreign investors are taking profits, and this is nowhere more apparent than in the sell-off of the banks.
Analysts said many investors thought share prices on both sides of the Atlantic had run ahead of themselves and were taking profits or keeping cash on the sidelines.
Irish budget airline Ryanair has had a huge 45 per cent boost in Scots passengers - taking profits to a record high.
She sold enough stock to cover her son's education bills, effectively taking profits off the table and putting them to good use.
Those who seek to criticise the one-off French market for somehow taking profits away from existing outlets are missing the point.
Similarly, if David sees extreme panic buying with a major surge in volume for taking profits, he may get out of a position.
People are taking profits after huge gains this week made as the last group of hedge funds and other investors went dollar long," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ in Tokyo.
Late selling of equities for taking profits, however, ate into early gains, with many market players retreating to the sidelines ahead of the release of inflation data later this week.
Traders were taking profits and were also spooked by bad US economic figures.