📖 Financial Lexicon Term
What is Take Profit (TP)?
A pending limit order that automatically closes an open position once it reaches a specified level of profit.
Detailed Explanation
A Take Profit secures your gains so you do not have to monitor the screen constantly. It is an exact price level. Once the market touches this price, the broker's server executes the order and deposits the realized profit into your account balance.
💡 Practical Trading Example
You buy BTC at $60,000 and set a Take Profit at $65,000. When Bitcoin hits $65,000, your trade closes automatically.