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Take Profit

Risk Managementbeginner
Updated 1/15/2024

Definition

A take profit order automatically closes a profitable position when the price reaches a predetermined target level. It ensures you lock in profits and don't miss profitable exits due to emotions or absence.

Example

If you buy GBP/USD at 1.3000, you might set a take profit at 1.3100 to secure a 100-pip profit when the target is reached.

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Tags

#risk-management#orders#profits
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