What is Take Profit?

An order placed to close a profitable trade once it reaches a specific price target.

In-Depth Explanation

Take profit orders ensure you lock in gains without having to manually watch the screen. It is part of a "set and forget" trading strategy.

"You buy at 1.2500 and set a take profit at 1.2550 to capture a 50-pip gain."

Knowing the terms is just the start. Learning how to apply them is where the edge is found.