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What is Take-Profit Order?
A take-profit order automatically sells your asset when it reaches a target price above your entry, locking in gains.
Full Explanation
A take-profit (TP) order automatically closes your position when the asset reaches a specified profit target. Combined with a stop-loss, it creates a complete trade plan with defined risk and reward. A good practice is to set take-profit at a level where risk:reward ratio is at least 1:2 (risk ₹1 to make ₹2). Multiple take-profit levels (partial sells at 25%, 50%, 75% of target) help secure gains while keeping exposure to further upside.
Example
Buy BTC at ₹50,00,000. Stop-loss at ₹47,50,000 (-5%). Take-profit at ₹55,00,000 (+10%). Risk:reward = 1:2.
Related Terms
Last updated: 2026-03-21