What is Take Profit and how to set it up?
Once a trader opened a position, it can turn from profitable to money-losing and back a few times. The price may reach the desired level when the trader cannot be around to close the position and fix his profit. Imagine your disappointment to wake up to a loss only to discover that at night your position was quite profitable but you did not close it! Take Profit exists to prevent that.
Take Profit is a type of order placed on a position and designed to fix a trader’s profit. If a price moves in the desired direction and reaches a predetermined level, Take Profit activates and closes the position to fix the gains.
Let's see how Take Profit works on an example:
Take Profit on a Short (Sell) position:
Let's say you open Short/Sell Position for 0.1 BTC once the price hits €6,500. To fix your profit if the price goes down, you set Take Profit price at €6,300. Once the market touches this price, the system closes out your position fixing your profit.
Notice that Take Profit on your short position will be triggered when Ask price reaches the price you have specified.
Take Profit on a Long (Buy) position:
Let's imagine that current market price is €6,500 for 1 BTC. You open Buy Position for 0.1 BTC at €6,500 and want to set Take Profit at €6,700. Once the market reaches €6,700, the system executes your order and fixes your profit.
Important that Take Profit on your long position will be triggered when Bid price reaches the price you have specified.
To sum it up, Take Profit order helps you not miss a profit opportunity when you can’t closely watch your trades. Take Profit is often used together with Stop Loss, which, in turn, limits the losses.
With MyBro, you can put Take Profit on any position. Take Profit order closes your position when the price reaches the mark you’ve set, thereby fixing your profit.
To set Take Profit order, go to Trading Terminal and in the new order window, tick the box for Protection Orders and set Take Profit price.
