Take Profit Order
A take profit order is an order placed with a broker to automatically close a trade when it reaches a certain level of profit. This order is used to lock in profits when the market moves in the trader’s favor. The order can be placed at a specific price or at a certain percentage of the current market price. Take profit orders are also known as limit orders or target orders.
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 a security at a certain price. This was done to protect their profits or limit their losses. As trading technology has advanced, take profit orders have become more sophisticated and are now used by traders to automate their trading strategies.
Comparison Table
| Order Type | Description |
|---|---|
| Take Profit Order | Automatically closes a trade when it reaches a certain level of profit. |
| Stop Loss Order | Automatically closes a trade when it reaches a certain level of loss. |
| Market Order | Executes a trade at the current market price. |
| Limit Order | Executes a trade at a specific price. |
Summary
A take profit order is an order placed with a broker to automatically close a trade when it reaches a certain level of profit. This order is used to lock in profits when the market moves in the trader’s favor. Take profit orders are also known as limit orders or target orders. For more information about take profit orders, traders can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Stop Loss Order
- Market Order
- Limit Order
- Stop Limit Order
- Trailing Stop Order
- Market on Close Order
- Limit on Close Order
- Stop on Close Order
- Fill or Kill Order
- Good Till Cancelled Order
