Take-Profit
A target price at which a winning trade is automatically closed to lock in gains before a reversal can erode them.
A take-profit order sits at your target price and closes the position the moment price reaches it. It removes the temptation to hold winners past their logical exit, which is as damaging as holding losers too long.
Effective targets are placed at key technical levels: prior highs/lows, measured moves, extensions, or areas of expected supply/demand. Arbitrary round-number targets often leave money on the table or get skipped by price.
Example
Buy at $100, stop at $98, take-profit at $104 (2:1 R:R). If price hits $104 the platform closes the trade and books the $4 gain automatically.
Related Terms
Break-Even
The price at which a trade neither profits nor loses — or the point at which a stop is moved to entry cost after partial gains.
BeginnerMaximum Favorable Excursion (MFE)
The furthest a trade moves in your favour before it either closes at the target or reverses into a loss.
AdvancedRisk-Reward Ratio
The ratio of potential profit to potential loss on a single trade. A 1:2 R:R means you risk $1 to make $2.
BeginnerScaling Out
Exiting a position in pieces as price advances, locking in partial profits while letting the remainder run toward a larger target.
IntermediateStop-Loss
A pre-set price level at which a losing trade is closed to cap the damage before it grows larger.
Beginner