Take-Profit Order (T/P)
A take-profit order (T/P) is an order placed with a broker to close a position when the price reaches a certain level. It is used to lock in profits when trading financial instruments such as stocks, futures, options, and currencies. The order is placed with the broker and is triggered when the price reaches the specified level. The order can be placed at any time and can be used to protect profits or limit losses.
History of Take-Profit Order (T/P)
The concept of a take-profit order has been around for centuries. It was first used in the commodities markets in the 19th century, when traders would place orders to buy or sell a commodity when it reached a certain price. This allowed traders to lock in profits or limit losses without having to constantly monitor the markets. The concept has since been adopted by the financial markets and is now used by traders of all levels.
Comparison Table
| Order Type | Description |
|---|---|
| Take-Profit Order (T/P) | An order placed with a broker to close a position when the price reaches a certain level. |
| Stop-Loss Order (S/L) | An order placed with a broker to close a position when the price reaches a certain level. |
Summary
A take-profit order (T/P) is an order placed with a broker to close a position when the price reaches a certain level. It is used to lock in profits when trading financial instruments such as stocks, futures, options, and currencies. The order is placed with the broker and is triggered when the price reaches the specified level. For more information on take-profit orders, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Stop-Loss Order (S/L)
- Limit Order
- Market Order
- Stop Order
- Stop-Limit Order
- Trailing Stop Order
- Fill or Kill Order
- Good ‘Til Cancelled Order
- Immediate or Cancel Order
- One Cancels Other Order
