A Take Profit (TP) is an instruction to close a trade at a specific rate, if the price is going in your favour, to ensure the profit is realised and goes to your available balance. If the market reaches your requested rate and you have gained the predetermined amount, the Take Profit will trigger and automatically close your position.
A Take Profit is mandatory on every position with the exception of non-leveraged BUY positions.
You can set your Take Profit according to a specific rate in the market, or as a monetary amount. The maximum Take Profit on most trades is 1,000% of your invested amount +/- 1,000% of your current P&L. This means that you will be able to update your Take Profit level continually as your profits increase.
You can adjust the Take Profit at any time while the trade is open.
Under normal market conditions, the set Take Profit is not guaranteed. When the market is volatile, the Take Profit rate you requested may not be traded in the market. In this case, the Take Profit will trigger at the next available rate. The result is that you could gain more than you expected on the trade.
Watch our video on the eToro Academy to find out more: