Take profit (take profit).
As Forex trading statistics show, most traders tend to maintain unprofitable trades until the last minute and close profitable ones quite quickly, without receiving the lion's share of the profit. Therefore, it is so important to immediately, before opening a new order, fix the amount of possible profit by setting the parameters of the take profit order.
Take profit is an auxiliary order that closes a position as soon as the price reaches a specified value, thereby fixing the achieved profit level.
Setting take profit parameters can be carried out both directly when opening a new position, and after, during the modification of a previously placed order. If you wish, you can always change the set value in one direction or another.
Why is Take profit needed?
Typically, traders pay more attention to placing stop loss orders ; a profitable order takes second place, although there are situations when it is simply impossible to do without placing a take profit.
• Trading pending orders - it is quite difficult to control when such an order will be triggered, and there is no certainty that after this the trend will not reverse in an unfavorable direction.
Therefore, the only option to take the profit received is the Take profit order. • Fast trend – sometimes there are simply lightning-fast trend movements when you physically do not have time to close a position.
At the same time, the machine copes with this much faster, allowing you to get a couple of points, and sometimes tens of points more profit. • Indecisiveness – if, after analyzing, you determine that it is possible to get at least 50 points of profit from a given movement, then a pre-established profitable order “will not allow” you to close the position earlier.
How to set take profit.
The parameters of this order are set during the opening of a new order, at least this should be done ideally. To do this, you just need to set the expected closing price of the position in a special window.
Take profit is set in the direction of opening the position:
Buy – above the current price value.
For sale below the current price value.
Its minimum value set by the broker is usually 10-15 points; you simply will not be able to set Take profit closer to the existing cent level.
The only option would be to use five-digit quotes, then this figure will decrease by 10 times. For more information on how to set take profit , read this link and on other pages of our website.