Take-Profit Order
A take-profit order is an order placed with a broker to close out a trade at a specified price level. It is used to lock in profits when the price of an asset reaches a certain level. The order is typically placed after the asset has already appreciated in value, and the investor wants to protect their gains. The order can be placed at a specific price level or at a certain percentage above the current market price.
History of Take-Profit Orders
Take-profit orders have been used by traders for centuries. In the early days of trading, traders would place orders with brokers to buy or sell a certain amount of an asset at a certain price. This allowed traders to lock in profits when the price of an asset reached a certain level. As trading technology has advanced, take-profit orders have become more sophisticated. Today, traders can place take-profit orders with their brokers that will automatically close out a trade when the price of an asset reaches a certain level.
Comparison Table
| Order Type | Description |
|---|---|
| Take-Profit Order | An order placed with a broker to close out a trade at a specified price level. |
| Stop-Loss Order | An order placed with a broker to close out a trade at a specified price level. |
Summary
A take-profit order is an order placed with a broker to close out a trade at a specified price level. It is used to lock in profits when the price of an asset reaches a certain level. The order can be placed at a specific price level or at a certain percentage above the current market price. For more information on take-profit orders, traders can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Stop-Loss Order
- Limit Order
- Market Order
- Stop Order
- Stop-Limit Order
- Trailing Stop Order
- Scaled Order
- Fill or Kill Order
- Good Till Cancelled Order
- Immediate or Cancel Order
