Take profit
ខ្លឹមសារនេះមានតែជាភាសាអង់គ្លេសសិន។
A take profit is an order that closes your trade at a target price, locking in the gain. It works like a limit order: it fills at your price or better, and only if price gets there.
A take profit is the other half of an exit plan. A stop loss caps the loss when you are wrong. A take profit banks the gain when you are right, without you having to be at the screen.
How a take profit triggers
On a buy position the take profit sits above the entry and is checked against the bid, the price you sell at to close. On a sell position it sits below the entry and is checked against the ask.
When it triggers, the whole position closes. Brokers usually fill a take profit at your level or better, and in a gap through the level the fill can be better than planned.
A take profit is attached to a position or to a pending order. You can set it when you open the trade or add it later.
Setting a target against your stop
Traders often set the take profit as a multiple of the stop distance, called the risk to reward ratio. Prices here are illustrative.
You buy 0.08 lot of EUR/USD at 1.10000 with a stop at 1.09750, 25 pips away. You place the take profit at 1.10500, 50 pips away. The risk to reward ratio is 25 to 50, or 1 to 2.
On 0.08 lot each pip is worth $0.80, which is the pip value of a standard lot scaled down. The stop risks 25 × $0.80 = $20, and the target pays 50 × $0.80 = $40, before costs.
At 1 to 2, you break even over time if one trade in three reaches the target: one $40 win pays for two $20 losses. Spread and commission push that rate a little higher.
The profit and loss calculator shows what any target is worth in money.
សំណួរ
Should I always use a take profit?
Not always. Some traders close by hand or trail a stop instead, but a fixed target keeps the plan working when you are away from the screen.
Why did my take profit not trigger when price touched it?
On a sell position the ask must reach the target, and your chart shows the bid. The bid can touch the level while the ask, a spread higher, has not yet got there.
Leverage multiplies losses as well as gains; only trade money you can afford to lose.
ពាក្យផ្សេងទៀតក្នុងជំពូកនេះ
Bid priceThe bid price is the price at which you can sell a currency pair right now. It is the lower of the two prices in every forex quote. You open a sell trade at the bid, and you close a buy trade at the bid.
Ask priceThe ask, or offer, is the price at which you can buy a currency pair right now. It is the higher of the two prices in every forex quote. You open a buy trade at the ask, and you close a sell trade at the ask.
PipA pip is the standard unit for measuring a change in a forex price. On most currency pairs it is 0.0001, the fourth decimal place, and on pairs quoted in Japanese yen it is 0.01. One tenth of a pip is called a pipette.
PipetteA pipette is one tenth of a pip, shown as the extra last digit of most forex quotes. On EUR/USD it is 0.00001, the fifth decimal, and on yen pairs such as USD/JPY it is 0.001. Traders also call it a fractional pip.
Pip valuePip value is the amount of money a one pip move adds to or takes from a position. It equals the pip size times the units traded, counted in the quote currency. On one standard lot of EUR/USD in a US dollar account it is $10.
LotA lot is the standard unit of trade size in forex. One standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot is 1,000. MetaTrader shows these sizes as volumes of 1.00, 0.10 and 0.01.
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