Take profit (TP)
Take profit (TP) is an order in forex trading that is placed to close a trade automatically once it reaches a specific price level that is favorable to the trader. The main purpose of a take profit order is to lock in profits by closing a position when the market reaches a specific price level. This allows traders to capture gains and exit the market without constantly monitoring their positions. A take profit order can be set as a limit order or a market order, depending on the trader’s preference. It is the opposite of a stop loss order, which is used to limit losses.