Take Profit: What Is It & Why Is It Important?
A Take Profit (TP) is an order you give to your broker, to automatically close your trade when your profit reaches your specified amount.
A Take Profit helps you to remove emotions like greed from your exit strategy, so that you don’t have to think before you exit a trade. It also helps you to multitask, so you can be doing other things (such as house chores) while trading.
How To Set Take Profit
To set a Take Profit, open the “new order” tab. Proceed to enter your TP price/pips/amount.
You can also set a take profit after opening a trade, by holding & dragging the active trade line on your chart. This feature is available on MetaTrader and TradingView.
Taking Partial Profit
You can further manage your risk by taking fractional profit on an active trade without closing it. This feature is available on MetaTrader. Another method of taking partial profit is by splitting your order into several small ones, and when the position enters profitability, you close some trades while leaving the rest to continue running.
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