L'INFORMATEUR CRYPTOTake profit: definition
A take profit is an order that closes all or part of a position at a price target, to lock in the gain.
Definition
The take profit (TP) secures gains at a level set in advance. Many traders use several targets (TP1, TP2, TP3) and close the position in pieces.
Partial take-profits
Example: close 30% of the position at TP1, move the stop to break-even, then let the rest run toward TP2 and TP3. The trade can no longer lose and keeps its potential.
Frequently asked questions
How do you choose your targets?
At zones where price has already reacted (resistance, previous highs, liquidity zones), checking that the risk/reward stays favorable.