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Take-Profit Order Definition

A take-profit order is an instruction to automatically close a position once it reaches a specified profit level.

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What is a Take-Profit Order?

Take-profit orders allow traders to lock in gains without needing to monitor the market continuously.

They are often used together with stop-loss orders to define a complete trade plan.

Example of Take-Profit Order

Setting a take-profit at $60 on a position bought at $50 automatically closes the trade once price reaches $60.

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