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TP
(Take Profit Order)
A TP (Take Profit Order) automatically closes a position at a specified profit target. For example, "Sell XYZ @ $60 TP" would sell when price hits $60, locking in gains.
Take profits help traders avoid emotional decisions and implement disciplined strategies. They're often used with SL orders to define risk/reward ratios (e.g., 1:2). About 25% of professional traders use automated TP levels. While securing profits, TPs may limit upside if prices continue rising. Some traders use trailing stops instead to capture extended moves. TP strategies vary by trading style - day traders might use 1-2% targets while investors may aim for 20-30%.
Take profits help traders avoid emotional decisions and implement disciplined strategies. They're often used with SL orders to define risk/reward ratios (e.g., 1:2). About 25% of professional traders use automated TP levels. While securing profits, TPs may limit upside if prices continue rising. Some traders use trailing stops instead to capture extended moves. TP strategies vary by trading style - day traders might use 1-2% targets while investors may aim for 20-30%.