Take profit: how to set a profit target before you enter
A take profit is an order that closes a position when the target profit price is reached; together with a stop loss, it defines the trade plan.
English term: Take profit
Take profit (TP) is an order to automatically close a position when a target price is reached. It lets you lock in a profit without having to watch the chart constantly. The TP level is usually set in advance, together with the stop loss, so that you know the ratio of potential profit to risk before you enter.
Targets are often set at resistance (for a long) or at the previous low (for a short). You can also split them into several parts and close the position in stages. It is a mistake to set a TP “by eye,” with no connection to the chart, or to keep moving it out of greed. Price can turn around just before the target and leave the order unfilled, so reaching it is not guaranteed.
See it live
Related terms
Other terms in the “trading” category
This entry explains a concept and is not an investment recommendation. Cryptocurrencies and leveraged trading carry a risk of losing money. Risk Warning.
Want to see this on a chart?
In Strefa Tradingu, a free place to learn, we walk through glossary terms using real chart examples.
Worth reading next
- trading for beginners (opens in a new tab) — An independent start: a readiness test, calculators and common pitfalls.
- crypto trading course from scratch (opens in a new tab) — Akademia Klubu Zero: a single path of Polish-language videos, from your first candle to your own plan.
- how to invest in crypto (opens in a new tab) — Krypto na Lata: a long-term plan instead of daily trading.
Learn with the Klub Zero family
Recommended Courses, books and community from the creators of kryptoliczby.pl
Crypto without the chaos, once a week
A Sunday recap: what matters in the market, explained simply. No signals, no profit promises.