Take Profit

Take Profit
Last modified: May 3, 2021
Estimated reading time: < 1 min

take profit order automatically closes an open order when the price reaches a specified threshold.

It is an order used by currency traders to automatically close their position once a certain profit has been made.

Although it halts any further advance in profit, it guarantees a specific profit after a level has been hit.

Take-profit orders are used to lock-in profits.

For example, if you are long USD/JPY at 110. 50 and you want to take your profit when the rate reaches 111.00, you will set this rate as your take-profit level.

If the bid price touches 111.00, the open position is closed automatically securing your profit.

Trades are closed at the current market rate, but in a fast-moving market, there may be a gap between this and the take-profit rate you had set.

If you liked this article, then please subscribe to our Newsletter Services for Forex Related updates. You can also find us on Facebook. and can join our Community Portal. If you have any confusion please leave your comments below.  
Was this article helpful?
Dislike 0 0 of 0 found this article helpful.



Please enter your comment!
Please enter your name here