A take profit order is a standing order to sell a security once it reaches a certain level of profit. Selling at this price ensures that the trader will make a profit on the trade.
Learn how a take profit order works to minimize risk and who should use one.
What Is a Take Profit Order?
A take profit order is a standing order put in place by traders to maximize their profits. It specifies a certain price above the purchase price, which is chosen by the trader. If the price of a security reaches that limit, it will automatically trigger a sale. If the price does not reach that limit, the order is not acted on.
A take-profit order is a short-term trading strategy. It is useful for day traders who want to take advantage of a quick rise in the cost of securities to make an immediate profit.
It is a type of limit order, though limit orders can be used to either buy securities at a low price or sell them at a high price.
Alternate name: Take-profit order, limit order, sell limit order
Acronym: T/P order
How Does a Take Profit Order Work?
To use a take profit order, day traders establish a price at which they want to sell a security. This price is one sufficiently above the price at which the security was bought to ensure that traders will make a profit on the sale.
Once the take profit point is reached, the order is triggered and the sale goes through at that day’s current market value. If that point isn’t reached, the sale is not executed, and the trader holds onto the securities.
A T/P order allows you to limit your risk or exposure to the market by exiting your trade as soon as the market prints a favorable price for you and not staying in any longer.
Setting a take profit order requires a technical analysis of the security’s value and the likely movement of the market. Some strategies for calculating an appropriate take profit order include:
- The average true range plus an overnight extreme
- A daily or weekly pivot point
- Chart pattern analysis
A T/P order is an automatic exit strategy based on a profit-loss calculation, rather than an emotional decision to sell or hold.
So, you already know that it is quite beneficial. But if you really want to get profited, you must go with a proper trading plan. Because a proper trading plan will be the best solution of all your trading problems. Read the definitive article about a proper forex trading plan.
BITCOIN RECOVERY IS VERY MUCH REAL, AM A LIVING TESTIMONY!!!!
I was actually fooled and scammed over ( $753,000 ) by someone I trusted with my funds through a transaction we did and I feel so disappointed and hurt knowing that someone can steal from you without remorse after trusting them, so I started searching for help legally to recover my stolen funds and came across a lot of Testimonials about WIZARD GARRY, an agent who helps in recovery lost funds, which I can tell has helped so many people who had contacted him regarding such issues and without a questionable doubt their funds was returned back to their wallet in a very short space of time, it took the expert 48hours to help me recover my funds and the best part of it all was that the scammers was actually located and arrested by local authorities in his region which was very relieving. Hope this helps as many people who have lost their hard earn money to scammers out of trust, you can reach him through the link below for help to recover your scammed funds and thank me later.
Email Address: [email protected]
Or WhatsApp: +15163299814… website: https://wzardgarryspeedhac.wixsite.com/my-site-1
Are you looking for a profitable investment where you can start with a little amount and earn a reasonable profit within a short period of time?. I never believed in any online investment because I was scared and never wanted to be cheated, until I saw a review about Mr Pablo Martinez. He’s a Forex/Crypto trading account manager who can help you manage your trading account with his trading strategies and winning signals. I started with an investment of $500 and earned a profit of $6,650 within 7 days. I now earn quite a lot on a weekly basis and I owe everything to Mr Pablo Martinez. Thank you Mr Pablo Martinez for turning my financial life around, and I will keep recommending your good works. If you want to invest in Stock, Binary options and Forex/Crypto trading, kindly contact Mr Pablo Martinez and you’ll be glad you did. There are no hidden charges.
Contact Mr Pablo Martinez through
E-mail: [email protected]
WhatsApp: +44 7520 636249
Using this opportunity I would love to extend my gratitude to Mr. Adam Wilson whom I contacted to report my issues. I consulted Adamwilson when I was involved in a bitcoin trading scam. It was unknown to me that there were systematic ways to retrieve scammed funds. I followed all the directives Mr. Adam Wilson gave to me and I was like a dream when I recovered all my money. You can reach out to him if you had the same experience as well on: Adamwilson. Trading @ Consultant Com / WhatsAPP + 1870 345 7937
My ex-husband and I had always managed to stay friendly after our divorce in February 2017. But I always wanted to get back together with him, All it took was a visit to this spell casters website last December, because my dream was to start a new year with my husband, and live happily with him.. This spell caster requested a specific love spell for me and my husband, and I accepted it. And this powerful spell caster began to work his magic. And 48 hours after this spell caster worked for me, my husband called me back for us to be together again, and he was remorseful for all his wrong deeds. My spell is working because guess what: My “husband” is back and we are making preparations on how to go to court and withdraw our divorce papers ASAP. This is nothing short of a miracle. Thank you Dr Emu for your powerful spells. Words are not enough.
Email [email protected]