Take Profit
An order that automatically closes a trade at a predetermined price level to lock in profits when the target is reached.
What is Take Profit?
A take profit (TP) order automatically closes your trade when price reaches your profit target, securing your gains without manual intervention.
Example
You BUY EUR/USD at 1.0850:
- Set take profit at 1.0910 (60 pips above)
- If price rises to 1.0910, trade closes automatically
- Profit locked in = 60 pips
Setting Take Profits
Common methods:
- Risk/Reward ratio: 1:2 means TP is 2x your stop loss
- Support/Resistance: Previous highs/lows
- Fibonacci levels: Extension levels
- Multiple TPs: Partial profit at TP1, rest at TP2
Risk/Reward Ratios
| Ratio | Stop Loss | Take Profit |
|---|---|---|
| 1:1 | 30 pips | 30 pips |
| 1:2 | 30 pips | 60 pips |
| 1:3 | 30 pips | 90 pips |
Higher ratios mean you can be profitable even with fewer winning trades.
Using with Currency Strength
Our Currency Strength Meter helps identify strong moves. When divergence is high (50+ points), consider larger take profit targets as the move has more momentum.