What is a Take Profit Order?
Take Profit (TP)
Forex Trading Glossary
Quick Answer: A take profit order automatically closes your trade when it reaches your profit target, ensuring you actually take profits instead of watching winners reverse.
What is a Take Profit (TP)?
A take profit order closes a position automatically when price reaches a specified favorable level. It locks in gains without requiring manual intervention.
Take Profit Guidelines
- Risk/reward alignment: Aim for multiples of the amount risked.
- Structure-based targets: Use support/resistance or measured moves.
- Partial exits: Scale out at key levels while letting runners continue.
- Adaptability: Consider trailing stops when trends accelerate.
Related Terms
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