Take-Profit
Introduction
A Take-Profit (TP) order is a type of order used in trading to help secure profits by automatically triggering a market or limit order to buy or sell an asset once it reaches or surpasses a specified price level, known as the take-profit price.
For a long position, a trader places the trigger above the current market price.
For a short position, a trader places the trigger below the current market price.
When you place a TP order, you set a target price at which you want the order to be triggered. If the market price of the asset reaches or exceeds the take-profit price, the take-profit order is activated, and a buy or sell order is executed to close your position and lock in profits.
The purpose of a TP order is to allow traders to capitalize on favourable market movements and ensure that they exit a trade when a desired profit target is achieved.
How It Works
There are two main types of TP orders: market and limit.
TP market order: This type of TP order is executed as a market order once the TP price is reached. It guarantees that the TP order will be executed promptly, but the actual execution price may differ from the TP price if the market is volatile.
TP limit order: With a TP limit order, the order is triggered when the TP price is reached, but the TP order is executed at a specified limit price or better. It provides more control over the buying or selling price, but there is a possibility that the TP order may not be filled if the market price doesn't reach the limit price.
Take-Profit Market Order
To place a TP Market Order:
Select your Order Type (Limit, Market, Stop Limit, Stop Market) and input the necessary details for your order based on the selected order type.
Choose either Buy/Long or Sell/Short.
Check the TP/SL box to activate the feature.
Set TP Market Order: By default, Market Order is enabled.
Set your TP Tigger based on the Mark, Index or Last Price.
Adjust the Leverage Slider to your desired position leverage.
Take-Profit Limit Order
To place a TP Limit Order:
Select your Order Type (Limit, Market, Stop Limit, Stop Market) and input the necessary details for your order based on the selected order type.
Choose either Buy/Long or Sell/Short.
Check the TP/SL box to activate the feature.
Set TP Limit Order: By default, Market Order is enabled. By default, Market Order is enabled. For Limit Order, uncheck the box.
Set your TP Tigger based on the Mark, Index or Last Price.
Adjust the Leverage Slider to your desired position leverage.
Take-Profit orders are best used by short-term traders interested in managing their risk. This is because they can get out of a trade as soon as their planned profit target is reached and not risk a possible future downturn in the market.
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