Take profit
Updated 2026-09-20
Definition
An order that automatically closes a winning position when a preset target is reached.
Why it matters
It removes emotion from the exit. It is set at a logical area (a resistance, a liquidity level) or as a multiple of risk (for example 2 times the stop).
Practical example
Stop at 25 pips and take profit at 50 pips: a 1:2 risk/reward ratio.
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Educational content, not financial advice. Trading involves risk.