Multiple Target Scale-Out Calculator
Plan multi-tier profit taking across 3 target levels and calculate volume-weighted exit prices.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
100 shares @ ₹500: 30% @ ₹520, 40% @ ₹540, 30% @ ₹575.
Securing partial profits smooths return volatility while keeping runners for big trends.
Assumptions & Parameters
- Allocation percentages across all target tiers sum to 100%.
Frequently Asked Questions
What is scaling out?
Closing portions of a winning position at progressive profit targets rather than exiting everything at once.
What are the advantages of scaling out?
It reduces psychological pressure, locks in guaranteed gains, and finances the remaining risk on the trade.
What is the drawback of scaling out?
If the stock makes a massive runaway move, your total profit will be lower than if you had held the full position.
What is a common scale-out allocation?
Taking 33% off at Target 1, 33% at Target 2, and letting the final 34% trail with a loose stop.
When should stop-loss be moved to break-even?
Most traders move their stop to break-even once Target 1 is achieved.
Does scaling out incur higher brokerage fees?
With flat-fee discount brokers (e.g. ₹20/order), executing multiple sell orders incurs separate transaction fees.