What Is a Take Profit

The finish line

A take profit is the stop loss's twin on the other side of the trade. The stop loss is a net below your entry that closes the trade if the price falls onto it; the take profit is a finish line above it that closes the trade if the price rises to it. Bought at the open of 3 September 2026 at 1.15872, with a stop at 1.15672 and a take profit at 1.16172 — a pip is the fourth decimal place, so twenty pips below and thirty above — the trade has two ways to end on its own, and whichever line is touched first is the one that ends it.

The day it was reached

Here is the finish line on the real day. The price climbed through the morning, and in the 15:00 hour it reached 1.16172. At that moment the take profit became a sell at that price, the trade was closed, and thirty pips — three hundred dollars at one lot — were in the account. The price went on to 1.16411 and closed the day at 1.16259, but the trade had already ended, at the line, while you were not looking at the screen.

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