What Is Take Profit?

The predetermined price level at which you plan to close out an open position for a profit. This is set when you initially establish the position. This is the price at which you want to sell and take your profit. It is important to set a take profit target and stick to it. If you don’t, you may end up holding a position for too long and lose your profit.

This can be different to position exit that is profitable. Profitable trades that have been exited due to trailing stop loss without reaching the Take Profit limit are a different category.

The number of ‘Take Profits’ may be difficult to calculate if the strategy developer has implemented their own method without using built in methods. The same goes for trailing stop loss as well.

See also