What Is Take Profit?
An order that automatically closes your position once price reaches your profit target. Setting take profit and stop loss together defines your risk reward ratio before the trade even starts.
Related Terms
- Stop Loss An order that automatically closes your position at a predefined price to cap your loss.
- Risk Reward Ratio The ratio between what you stand to lose if your stop is hit and what you gain if your target is reached.
Where You Will Meet This Term
You will run into take profit constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.