locked in

locked in definition - finance
  1. A situation in which an investor has made a profit on an investment but is reluctant to sell it because the gain will be subject to ordinary income taxes rather than capital gains taxes, which are assessed after a minimum holding period and are lower than regular tax rates.
  2. A situation in which a hedged position canÂ’t be lifted without offsetting both sides of the hedge.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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