A Take Profit (TP) is a type of order that allows you to automatically close a trade once a specified profit level is reached. It is a key risk-management tool designed to help secure gains without needing to constantly monitor the markets.
A Take Profit helps lock in profits by automatically closing a trade when a target price is reached.
How Does a Take Profit Work?
A Take Profit order is placed alongside an open trade. It instructs the trading platform to close your position when the market reaches a specific price in your favour.
For Buy (long) trades, the Take Profit is set above the entry price
For Sell (short) trades, the Take Profit is set below the entry price
When the market reaches your Take Profit level, the order is executed at the next best available price, securing your gains.
Please note:
In fast-moving markets or during periods of low liquidity, a Take Profit order may not execute at the exact specified price due to slippage. This behaviour is standard across trading platforms and depends on market conditions at the time of execution.
Take Profit placement depends on whether the trade is a buy or sell position.
Take Profit Example
You open a Buy trade on EUR/USD at 1.0800 and set your Take Profit at 1.0850.
If the market rises to 1.0850, your trade closes automatically
This captures a 50-pip profit (excluding fees or commissions)
A Take Profit defines your profit target before entering the trade.
Why Use a Take Profit?
Take Profit orders are an important part of structured trading. They help you:
Secure profits automatically when your target is reached
Reduce emotional decision-making during rapid price movements
Maintain discipline by sticking to a predefined risk-reward plan
Manage your time efficiently without needing to watch the markets constantly
Using Take Profit orders helps traders trade with more consistency and control.
Can I Change My Take Profit After Opening a Trade?
Yes. You can modify or remove your Take Profit at any time before the trade is closed.
In MT4 or MT5, this can be done by:
Right-clicking the open position and selecting “Modify or Delete Order”
Adjusting the Take Profit price to your preferred level
Clicking Modify to save the changes
Take Profit levels can be adjusted as market conditions change.
Take Profit vs. Stop Loss: What’s the Difference?
Feature | Take Profit (TP) | Stop Loss (SL) |
Purpose | Locks in gains | Limits potential losses |
Triggered when | Price moves in your favour | Price moves against your position |
Placement | Above (Buy) / Below (Sell) | Below (Buy) / Above (Sell) |
Using both Take Profit and Stop Loss together helps define potential outcomes before entering a trade, providing greater clarity and confidence in your strategy.
Final Tip
When setting a Take Profit level, consider:
Market volatility
Support and resistance zones
Your overall trading plan and risk-reward ratio
Take Profit orders are most effective when used alongside tools like Stop Loss as part of a complete risk management approach.
If you need help setting up or adjusting Take Profit orders on your account, our support team is happy to assist. You can reach us via live chat or email at [email protected].