Take Profit
Risk
Take profit is a pre-set order to close a position at a target gain.
Take profit is a pre-set order to close a position once it reaches a defined gain. Combined with a stop loss, it defines the risk/reward profile of a trade up front and removes the in-trade decision.
In prop trading, automated take-profit orders also enforce the trader''s plan against the temptation to hold winning trades for outsized gains that could trigger consistency-rule issues.
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