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  1. Home
  2. /Glossary
  3. /Take Profit
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trading

Take Profit

An order that automatically sells your position when price reaches a target level to lock in gains.

Definition

An order that automatically sells your position when price reaches a target level to lock in gains. Setting take-profit levels before entering a trade is crucial for disciplined trading. Many traders use Fibonacci levels, previous resistance zones, or round numbers as take-profit targets.

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Related Terms

Stop Loss

An order to sell automatically if price drops to a specified level.

Risk Management

Strategies for limiting potential losses in your investments.

Limit Order

An order to buy or sell at a specific price or better.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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