Take Profit (TP) is a word that traders often use. When the graph reaches this point, it means you can make a profit. In this article, we'll go over its definition and advantages. It will help you understand what TP means and how to use it. 

What is Take Profit (TP)?

Take Profit (TP) is an order to close a trade at a set price when the market is in the upward trend (Bullish Market). You must set the TP based on the number of pips or a percentage of your capital. When the graph gets to the TP point, the system will close the order automatically.

How to use the Take Profit (TP)?

The best way to use TP is to follow the rules below.

1. You should determine the profit of the trade.

Most professional traders will estimate that their profits per trade will range between 3% and 10%, which is the safest amount and the least likely to be lost. 

2. If you're unsure, don't change the TP order.

You only change the TP order when there are factors affecting the price trend such as news.

Pros of Take Profit (TP)

1. You don't always have to follow the graph.

When the chart  hits the predefined take profit price that you placed, the system automatically closes the order.

2. You make money for sure.

It means that you can make profit when the chart reaches the predefined price that you placed. So, you don't have to worry about how much the chart moves.

Conclusion

When you trade, you'll see that setting a take profit (TP) is very helpful. Therefore, you should set a TP order every time you trade to increase your chances of making a profit.

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