What is take profit in trading?

What Is Take Profit in Trading?

Take profit is an order that automatically sells (or closes) when the price rises to your target. For example, if you buy at Rs 50,00,000 and set take profit at Rs 55,00,000, the order executes when price hits Rs 55,00,000. It locks in profit without you having to watch the screen. You can combine stop loss and take profit: one caps loss, the other books profit. In fast markets, the fill may be slightly different from your exact level. Use take profit to stick to your plan and avoid greed.