Take-Profit Order - T/P
 |
Definition of 'Take-Profit Order - T/P'An order used by currency traders specifying the exact rate or number of pips from the current price point where to close out their current position for a profit. The rate deemed to be the level where the trader wants to take a profit is sometimes referred to as the "take-profit point". |
 |
Investopedia explains 'Take-Profit Order - T/P'As the name suggests, take-profit orders are used to lock in profits in the event the rate moves in a favorable direction. For example, if you are long a currency pair position and believe the price will rise to a certain level, but are unsure what it will do beyond that level, placing a take-profit order at that point will automatically close out your position allowing you to lock in profit. Example: Buy $100 worth of yen at 107.4 yen per dollar = 100*107.40 = 10,740 yenPlace a take-profit order at 108.80. Price then rises from 107.40 to 108.80 Take-profit order automatically executed to sell $100 and buy 10,880 yen Profit of 140 yen realized. |
Related Definitions
Articles Of Interest
-
A Look At Exit Strategies
Setting appropriate exit points should help you avoid taking premature profits or running losses. -
Getting Started In Forex Options
Stocks are not the only securities underlying options. Learn how to use FOREX options for profit and hedging. -
What are the rules for placing stop and limit orders in forex?
The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but also to suffer large losses. For this reason, investors should employ ... -
Risk Management Techniques For Active Traders
Use stop-loss and take-profit points to your advantage with these strategies. -
Forex Tutorial: The Forex Market
In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market. -
Which Order To Use? Stop-Loss Or Stop-Limit Orders
Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know ... -
The Basics Of The Bid-Ask Spread
The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders. -
Forex: Demo Before You Dive In
All trading platforms have benefits and drawbacks - master the fake trade before making a real one. -
Forget The Stop, You've Got Options
Using options instead of stop-loss orders adds finesse and control in limiting losses. -
The Stop Loss Order
A stop loss order can protect an investor's portfolio when it is left unattended. Find out more about this market order and how it can work for you.
Free Annual Reports