The Take Profit Order

After the stop loss order, there is one more important order: the take profit order. This order is very simple: it just terminates the position and takes the profit generated. There is a really good reason to do that.

The reason for taking profit is that the forex market is never going in one direction for eternity. Eventually it is going to reverse its direction and start going against you. This is why you need to place a take profit order and take your profits in small bites.

Every good forex trading system sets a take profit order, also known as T/P order. However, not all systems do it the same way. There are systems that close the entire position on the take profit order. Other systems close only a part of the position, mostly half, and let the other part run for free until it hits the stop loss. The idea behind this strategy is moving the stop loss to avoid taking a profit and losing it back on the other part of the position.

Good luck with taking profit,
Nadav

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