What is Take Profit (T/P)?

A Take Profit (T/P) order is a type of trading order use to automatically close a position once it reaches a predetermined profit level. This order locks in profits by executing a trade to close the position as soon as the price meets the profit target set by the trader.

The purpose of a Take Profit order is to secure profits at a desired level before the market potentially reverses. When the market price reaches the set level, the Take Profit order triggers, and the position is closed automatically at the next available price, securing the specified gains.