GLADIOGLADIOTrading
Glossary

Take-profit(Take-profit)

An exit order that realises profit at a predetermined target level. It defines the "reward" side of the risk/reward ratio.

Also written as: take profit · TP · kâr al

The target can be set by structure (the next resistance/support), a measured move, or a fixed multiple of R. Partial profit-taking (for example, closing half at 1R and trailing the rest with a stop) is a common practice.

Trading without a target leaves your profit to chance; but always taking profit too early also lowers your expectancy. Set a rule and evaluate it with its own statistics.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.