What is Take-Profit?
An order that automatically closes your position at a target price to lock in gains.
A take-profit (TP) is a limit order that closes your position when the price reaches your profit target. Like a stop-loss, it executes automatically — removing the need to watch the screen and the temptation to hold too long.
How it works:
For a long position at $50,000:
The exchange fills your take-profit order when the market touches $52,000, banking the $2,000 gain.
Setting a take-profit:
The best take-profits are placed at levels of expected resistance — not arbitrary round numbers:
Partial take-profits:
Many traders close part of their position at the first target and move their stop to breakeven, letting the remainder run. Example:
Take-profit vs. trailing stop:
A take-profit locks in a specific price. A trailing stop follows the price upward and closes if it reverses by a set amount — useful in trending markets where you want to capture more upside without a fixed target.