What is Take Profit?

A pre-set order that banks your gains automatically at a target you chose before entering.

A take profit (TP) is an order that closes your position automatically once price reaches a favourable target set in advance. Like the stop loss, it removes in-the-moment emotion from the exit: the decision is made while you are calm and analytical, not while watching money flicker. Professional targets sit at structural objectives — the next liquidity pool, an opposing order block, the origin of a previous move — not at hopeful round numbers.

Many desks, including ours, publish two targets. TP1 banks partial profit and often pays for the trade by allowing the stop to move to breakeven; TP2 lets the remainder run toward the larger structural objective. This structure accepts a truth about markets: you cannot know in advance which winners will become great trades, so you build exits that profit in both cases. The ratio between target distance and stop distance is the trade's risk:reward.