A take-profit order automatically closes a trade once the price reaches a specified favorable level, locking in gains without requiring you to watch the market. It's typically set alongside a stop-loss so that both the potential gain and potential loss on a trade are defined in advance.
A common approach is to set a take-profit distance that is a multiple of the stop-loss distance, to maintain a favorable risk-to-reward ratio.
Take-Profit
An order that automatically closes a winning trade once it reaches your target price, locking in profit.
T
66 of 76 in Risk Management