JoymistaWhat Is a Take-Profit Order?
A take-profit order closes your trade automatically at a target price you set in advance, locking in the gain without watching the screen.
Explained
Targets usually sit at a logical level such as a previous resistance, and together with the stop they set the risk-to-reward ratio. If price never reaches the target, the trade stays open.
Example
Example with made-up numbersYou buy at 1.1000 with a target at 1.1100; if price gets there, the trade closes 100 pips up.
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Related terms
- Stop-LossA stop-loss is an order that closes your trade automatically at a price you set in…
- Risk-Reward RatioThe risk-reward ratio compares what you risk to your stop with what you aim for at your…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
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Open in JoymistaEducational content, not investment advice.