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Orders

Take-profit — definition & meaning

A preset order that closes a winning trade at your target price.

A take-profit order closes your position automatically once it reaches your profit target, locking in the gain without you having to watch the screen.

Setting a take-profit alongside a stop-loss defines your risk-reward before you enter, and removes the temptation to get greedy and give profits back.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Stop-loss
A preset order that closes a losing trade to cap your loss.
Limit order
An order to trade only at a specified price or better.
Risk-reward ratio
How much you stand to gain compared with what you risk on a trade.
Market order
An order to buy or sell immediately at the best available price.
Stop order
An order that triggers a market order once a set price is reached.
Stop-limit order
A stop that triggers a limit order rather than a market order.

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