Trading glossary

Take profit: meaning in trading

A take profit is an order that closes a trade automatically when price reaches your target.

Setting the target before you enter removes the temptation to snatch a small win early or hold a winner until it turns into a loss.

In the Asia sweep strategy the target is the liquidity on the other side: the opposite end of the Asia range, or a 4 hour, daily or weekly high or low beyond it, at least three times the risk away.

All trading terms