For Business

Risk & Money Management

How to Set a Take Profit

A take profit is a price worked out before the trade at which the platform closes a winning trade for you, measured from the trade's price in the same unit as the stop and turned into dollars by the same size. This paper shows you one target worked out beside its stop on the euro against the dollar at its 10:15 price on 17 December 2025, an example 50 pips above; the idea as a kettle that switches itself off at the boil; the three lines on the fifteen-minute chart, with the two days the price came within four pips of the target; the stop and the target on one ladder; and the Take Profit field on your platform, which is a limit held on the server.

Difficulty
Beginner
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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One target, worked out beside its stop

A take profit is a price above a buy, or below a sell, at which the platform closes the trade for you, and it is worked out the way a stop is. Take the euro against the dollar at 1.17166, its 10:15 close on 17 December 2025, with the stop from the last paper 25 pips below at 1.16916. The target's distance is chosen — 50 pips here, as an example, twice the stop's — which is 0.00500 on a five-decimal price, so the take profit sits at 1.17166 plus 0.00500, or 1.17666. At the same 0.40 lot it is worth 50 times 10 times 0.40, or 200 dollars, against the stop's 100. Same unit, same price, same size, the other direction.

A kettle that switches itself off

Picture a kettle. It switches itself off at the boil, whether or not anyone is in the kitchen, and it does not decide that the water is probably hot enough or wait for a rolling boil; the temperature was set before it went on. A take profit is that switch: a price chosen before the trade, at which the platform closes a winning trade for you. What the switch does not do is as much the point as what it does. It does not move the target up when the water is nearly there, and it does not hold on for a bigger boil. It switches off at the number, and the number was yours.

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