What is Take Profit?

What is Take Profit?

What is Take Profit

Among many useful types of orders forex traders can place to take advantage of, one which is very effective is the take profit (T/P) order. It is a type of order which allows the traders to lock their gains. This type of order closes itself when a particular profit level is met, which is predetermined by the trader. Although using this order limits a person on how much profit an opportunity might let them make, this is a rather safe tool for the traders who have set goals and targets to make a specified amount of profit from a trade and close their position. For example, if you are buying a security at $10 and you want to take profit at $15, that is your take profit limit and once the market reaches that limit your order will automatically be closed leaving you with $5 profit.

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