Take profit
An order that closes a trade at a set price to lock in profit. Signals often give two or three take-profit levels.
In practice
A trade risks 30 pips with two targets: TP1 at 30 pips and TP2 at 60. Closing half at TP1 and moving the stop to entry locks in a profit while letting the rest run.
Closing winners early out of nerves while letting losers run to the stop. Over time that makes average wins smaller than average losses.
Related terms
Stop loss
An order that closes a trade at a set price to cap the loss. It…
Risk:reward ratio
The potential loss compared with the potential gain. Risking 30…
Breakeven
Moving the stop loss to the entry price so the trade can no longer…
Forex signal
A trade idea with a pair, direction, entry, stop loss and…
Partial close
Closing part of a position to bank profit while leaving the rest…
Buy limit
A pending order to buy below the current price, used to enter on a…