Take-Profit

Take-profit is a conditional order used to automatically close a trading position after a predefined target price is reached.

For a long position, the take-profit level is generally above the entry price. For a short position, it is generally below the entry price.

Example

If a trader opens a BTC long position at $60,000 and sets take-profit at $65,000, reaching the specified level activates an order to close the position. Depending on the order design, execution may use a market or limit mechanism.

When market execution is used, the actual execution price can differ from the trigger level because of slippage.

Take-profit vs. stop-loss

Stop-loss is primarily designed to manage an adverse price movement, while take-profit is designed to automatically realize a result after a target level is reached. Both are conditional order mechanisms.