Glossary
Take-Profit
Risk Management
A take-profit is a resting order that closes a position automatically once price reaches a predefined profit target.
Targets are usually set at structural levels — prior swing highs and lows, measured moves from chart patterns, or Fibonacci extensions — and then expressed as a multiple of the stop distance.
Pairing take-profit with stop-loss defines the reward-to-risk ratio before the trade is placed, which is the only way to know in advance what win rate the strategy needs to be profitable.