Take Profit

Take profit orders are used to lock in a targeted profit on a long and short position. The profit price can be expressed in terms of absolute price or as a percentage from the buying price or the current price of assets purchased or shorted. Take profit order automatically closes an open order when the price reaches the specified threshold.

Example

Suppose you are long stock ABC at $110.50 and want to book your profit when the rate reaches $120. Place a  take profit order at $120. When the price moves in the favourable direction and reaches $120.0, take profit order will be automatically executed, closing your open position and realizing the profit.