A Take Profit (TP) is an order placed on a trade to automatically lock in profits when the market reaches a specified price level.
When you set a Take Profit, you are instructing the system to close your trade once your target price is reached.
How it works
A Take Profit is not executed immediately
When the Take Profit price is reached, it triggers a market order
The trade is closed at the best available market price
Example
You buy a stock at $100.
You set a Take Profit at $130.
If the market price rises to $130, your Take Profit is triggered and the position is closed automatically, securing your profit.
Important to know
Take Profit orders do not guarantee execution at the exact price
In fast-moving markets, the trade may close at a slightly different price
Take Profit helps lock in gains but does not guarantee profits
Why use a Take Profit?
Helps secure profits automatically
Removes emotional decision-making
Allows you to plan trades in advance
Works even when you are not monitoring the market
Summary
A Take Profit automatically closes a trade when the market reaches your target price, helping you lock in profits in a disciplined way.