Take Profit
Take profit is a financial term used to describe the action of selling an asset when it reaches a certain predetermined price. This predetermined price is known as the take profit level. The take profit level is set by the investor or trader in order to lock in profits from a trade. When the asset reaches the take profit level, the investor or trader will automatically sell the asset and take the profits.
History of Take Profit
The concept of take profit has been around for centuries, with traders and investors using it to protect their profits from volatile markets. In the modern era, take profit is a common feature of online trading platforms, allowing traders to set a predetermined price at which they will automatically sell their assets. This helps to protect their profits and limit their losses.
Comparison Table
| Take Profit | Stop Loss |
|---|---|
| Sells an asset when it reaches a certain predetermined price | Sells an asset when it reaches a certain predetermined price |
| Used to lock in profits | Used to limit losses |
| Can be set manually or automatically | Can be set manually or automatically |
Summary
Take profit is a financial term used to describe the action of selling an asset when it reaches a certain predetermined price. This predetermined price is known as the take profit level and is set by the investor or trader in order to lock in profits from a trade. For more information about take profit, traders and investors can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Stop Loss
- Limit Order
- Market Order
- Stop Limit Order
- Trailing Stop
- Risk Management
- Position Sizing
- Asset Allocation
- Portfolio Management
- Technical Analysis
