What is take profit (TP)?

Take-profit (TP) is another commonly used tool in online Forex trading. 

While the stop-loss order is a risk managing tool to prevent high losses, a take-profit order allows you to close your position while you’re still making a profit. 

Understanding take-profit

Much like a stop-loss order, take-profit (TP) is an order to close a trade as soon it reaches a specific rate. Essentially, it helps you to close a trade the moment it reaches the predetermined amount.

The benefits of take-profit

1. Take-profit is an excellent way to ensure you’ve realised a profit.
2. You don’t need to be in front of your Forex Terminal to make a profit.
3. You can change take-profit while your trade is still open.
4. Take-profit can save time and reduce a considerable amount of stress.

Note: sometimes, you can gain more than you anticipated on the trade. For example, if the take-profit rate you requested is not traded in the market and the order triggers at the next available rate.