What Is a Take Profit? Definition
Take profit definition: a take profit is a trading parameter that corresponds to an order to close a position when the market price reaches a level set by the trader on a winning trade. In other words, a take profit order locks in profits when the market moves in favor of the trader’s position and reaches a certain level.
A take profit order is used to anticipate a price rise without being certain how the price will move. The take profit order then automatically closes the trader’s position at a predefined price level, and the trader collects the profits when the position is closed.
To activate a take profit, you need to set it up on the trading platform of your choice. For example, you can activate a take profit on eToro and change it at any time.
On related topics, our articles “Take Profit” and “NFT: Simple Definition, How It Works and How to Buy in 2026” are a good complement to this guide.
Take Profit Synonyms
Here is a list of terms with the same meaning as take profit:
- Profit target;
- Profit-taking order;
- Take profit order;
- TakeProfit;
- Profit order;
- Gain order;
- Take Profit Order;
- Profit stop;
- TP order;
- Profit taking;
- TP;
- Order Take Profit.
Take Profit Etymology
Take profit is made up of two words, “take” and “profit”. Literally, “take profit” means taking your gains.
Brokers for Trading with Take Profit Orders
Terms and Vocabulary Related to Take Profit
Stop loss order – definition: a stop loss order is triggered when a security’s price falls to a level beyond which the trader risks losing money. This type of order therefore works the opposite way to a take profit.
Take profit level – definition: the take profit level is the price set as the trigger level for the take profit.
Take profit price – definition: the take profit price is a synonym of take profit level, as it is the value at which the take profit is activated.
Trailing stop take profit – definition: a trailing stop take profit is a type of take profit order that tracks the market’s trajectory and is triggered when it reaches the profit level the investor is aiming for.
Other Meaning
In everyday language, “take profit” means “to take advantage” of something.
What Is a Pip? Definition
The pip is the unit of measurement in which a take profit is expressed. A pip, or “percentage in point”, is the smallest change in value between two currencies. It represents the smallest move a currency’s value can make, i.e. the fourth decimal place of a value. Traders often use pips to estimate the value of a gain when a position pulls back. Pips are also used to express the spread, or the difference between the buy price and the sell price.
Diversifiez votre patrimoineInvestissez dans l’artDes tableaux originaux, pièces uniques signées par l’artiste. Un actif tangible, loin des écrans et des cotations.Voir les tableaux →What Is a Trailing Take Profit? Definition
A trailing take profit is a form of take profit that works the same way as an ordinary trailing order. The difference is that it activates a trailing stop when the take profit level is reached. It is a dynamic order that kicks in when the price level set by the trader is reached, while also protecting the trader from losses caused by a potential price drop.
For example, say you buy a security at €100, set a take profit at €110 and a trailing take profit at 5%. If the price reaches €105, nothing happens, as the €110 take profit has not been reached. But if the price reaches €110, the trailing take profit will place a stop order at €104.5.
If the price then falls to €105, the stop order stays at €104.5. But if the price rises to €120, the stop order moves up to €114. So if the price were to fall to €110, the stop order at €114 would be triggered.
Which Trading Styles Can You Use with a Take Profit?
A trading style is an investment technique a trader uses to improve their chances of making gains. Several trading styles can be used with a take profit:
Scalping
As a reminder, scalping is a trading technique that involves buying or selling financial products within a short time frame. Take profit scalping combines scalping and take profit orders to make gains when markets move very quickly.
Copy Trading
Take profit copy trading is an investment technique in which you automatically copy another investor’s activity while using a take profit. The take profit then closes the trade when it reaches a certain amount of profit.
If you want to use take profit orders with copy trading, you need a reliable, easy-to-use trading platform. eToro is a smart choice. It is a safe platform, especially if you are new to trading, and you will see that copy trading is simple on it.
Day Trading
Day trading is an investment technique that involves opening a position and closing it within a single day, by the market close. Take profit day trading therefore means using a take profit during the day trading session.
Traders who use this style often place their take profit order further away, as this gives them a better chance of reaching the take profit level. They often refer to pivot points to find the best levels for their take profit orders.
Take Profit and Swing Trading
As a reminder, swing trading is a technique that aims to capture the most obvious short-term price swings. Take profit swing trading is therefore a strategy that anticipates price movements while using a take profit. With swing trading, the trader can place take profit orders near the closest support levels on short positions and near resistance levels on long positions.
What Is a Take Profit in Cryptocurrency? Definition
A cryptocurrency take profit is an order that is triggered when the cryptocurrency’s price reaches a level set in advance. When the price reaches that level, the position closes: the coins are sold if the position is long, or bought back if the position is short. The goal of a crypto take profit is therefore to close the position when the price rises and set the profits aside.
What Is a Take Profit in Forex? Definition
A forex take profit is a take profit order used to lock in profits on the currency market. It is widely used by currency traders who need this order to close their position when the price reaches the target level.
A take profit is especially essential for those who want to trade this very fast-moving market, and the same goes for the stop loss. A stop loss order protects the trader from losses if the price drops suddenly.
What Is a Good Take Profit?
A good take profit is a take profit order placed at the optimal level. A good take profit is based on technical support and resistance levels once the price stabilizes. This way, the trader can place the take profit just above the support line for a short position, and just below the resistance line for a long position.
Setting a good take profit is difficult. Most of the time, a good take profit depends on the level of risk taken and the trading strategy used. That is why setting a take profit should follow a sound market analysis.
Conclusion: Take Profit Definition
Among the key points to remember about the take profit definition: a take profit is a reliable way for traders to lock in gains on a rising security. A take profit is measured in pips (percentage in point).
You can also use a take profit with different trading styles, and on many markets such as forex and cryptocurrency. Finally, a good take profit is placed at the optimal level based on market analysis.
Now that you know more about take profit orders, you can start using them in your trading.
Want to learn more about trading terminology? Discover our other definitions on Trader Francophone.