Take-Profit Order
A take-profit closes a position automatically at a set profit target, removing emotion from the exit.
A take-profit closes a position automatically at your target price, banking the planned profit. It removes emotion from the exit and pairs with a stop-loss to define risk before entry.
A take-profit (TP) order closes a position automatically when price reaches a specified level in your favour, banking the planned profit. It removes the temptation to hold a winner until it turns into a loser. The typical setup pairs a take-profit with a stop-loss, defining the full risk and reward of the trade before entry.
How It Works
- Executes as a limit order at the target price or better
- Usually set at the same time as the stop-loss, before entry
- Locks in the reward side of your risk-reward ratio
Trading Tips
Set targets at structure: previous highs/lows, measured moves, or key levels
Decide the exit before entry - moving TP mid-trade is how winners become losers
Take-Profit Order Example
Say you buy GBP/USD at 1.2700 targeting 1.2760, risking 30 pips to make 60. Price taps 1.2760 overnight and the platform banks the gain while you sleep. Without the order, morning often shows price back at 1.2710 and the profit gone.
How Traders Use Take-Profit Order
Set every target before entry, at the next structure that pays your required multiple. Move it to breakeven once price covers the risk, and never widen a target mid-trade because greed renegotiated.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.