A take-profit is a pre-set exit that closes some or all of a position once price reaches a target. Many traders scale out — taking partial profit at a first target and moving the stop to break-even — to lock in gains while leaving room for a larger move. Deciding targets before entering removes emotion from the exit.
This term belongs to Risk & statistics. See how it fits the bigger picture in The Money, part of the free DEGEN ACADEMY — or watch it play out on the live terminal.
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FAQ
What is Take-profit?
A take-profit is a pre-set exit that closes some or all of a position once price reaches a target. Many traders scale out — taking partial profit at a first target and moving the stop to break-even — to lock in gains while leaving room for a larger move. Deciding targets before entering removes emotion from the exit.