What is Profit Booking

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Profit Booking means selling a stock that has increased in value so that you actually book the gain. Before you sell a stock that has increased in value, the gain is called unrealized gain or nominal gain. Closing your deals to realise your profits on a particular trade is called profit booking.

Profit Booking is the act of selling a security in order to lock in gains after it has risen substantially. Profit booking is also known as profit taking.

When individuals or companies their holdings to cash out the profits that they have created. This situation is called profit booking. Investors have to adjust their Shares folder after the profit booking takes place.

Booking Profit is nothing the realization or encashment of your previously bought shares. Profit booking is therefore a certain event. People will always want to liquidate their investments when their targets are met.