Take Profit. How do I set a Take Profit?

What is a take profit? Take Profit - is an order to automatically close the deal with the profit when the predetermined price level is reached. Take Profit is translated into Russian as "Take Profit", so this order is usually set in cases where the trader cannot continuously monitor the open trade or expects sharp price movements.

How do we set the take profit?

Take Profit is set for a Buy position above the order priceSince we are assuming that the price will move upwards. For example, if we opened a buy trade at EURUSD at 1.12595 and we wanted to make a 50 pips profit without being at the terminal, we would have to set the Take Profit at 1.13195 after opening the trade, as shown in Figure 1.

For a Sell trade (Sell) it is vice versa - take profit is set below the orderbecause we are waiting for the price to fall. For example, if we have a sell trade at 1.13200, then if we want to exact a 50 pips profit, we would have to set the take profit at 1.1320 - 50 = 1.12600. In this case we have five-digit quotes, so 50 pips looks like 500.

Note that take profit can be set for all types of orders, including pending orders.

Like the Stop Loss order, Take Profit is executed automatically even if the terminal is closed, i.e. it is stored on the broker's server.

How do I set a take profit?

Let's look at a simple example, How to set a take profit in MetaTrader 4. The question is often asked how to set take profit in the Quik terminal, but let's say that there is not much of a difference - the general principle will be similar. Let's assume that we have a small trade opened on EURUSD and we want to set a take profit for it. We can see it on the price chart and on the "Terminal" tab.

Step 1

1. Point the mouse on the selected trade in the "Terminal" tab and right-click.
2. In the window that appears, look for "Modify or Delete Order".
3. Press it and go to step 2.

Step 2

Directly set the take profit. To do this, we need the right block with the blue button. Take Profit can be set in three different ways:

1. By setting a certain level in pips from the current price, where the take profit will be set.
2. Choosing the suggested minimum take profit from the current price.
3. Independently setting a quote for the desired level of profit.

Step 3

Suppose we have chosen the first option and set the take profit level 20 pips below the current price. What will happen?

After pressing the change button, we will get the take profit set not from the opening price of the deal, but exactly from the price that the market is currently offering. That is, if your trade is already down more than 20 pips, then the take profit will close the trade with a minus, not with a plus, as we expect. So be careful.

Therefore, it is always better to use the independent take profit price entry as shown in the following figure. This will increase your control over the situation. As a result, we set the take profit 20 pips below the opening price of the trade.

Step 4

After clicking on the modify button, the take profit will be set. You will be offered to print the information about this event. If you keep a trader's diary, it will be even handy.

In addition, the fact of setting a take profit will be shown on the chart and in our trade. Congratulations!

How do I cancel a set take profit?

If you suddenly made a mistake with the price or just don't want to use a take profit anymore, you can easily delete it. To do this:

1. Point the mouse at the take profit line.
2. Press the right mouse button.
3. Find the item "Cancel Take Profit" and click it.

How to track take profit in MetaTrader4?

The result of your open trade, which has a take profit, is easy to track. As soon as the price approaches the moment of closing the order with the set profit, the corresponding field of the take profit price lights up green. At this point, you can begin to actively monitor the market in order to close the order manually, if necessary, if you doubt that the price will reach your level.

If everything goes according to a preconceived scenario, the deal will close by itself with a profit, like in our case. And this result will be displayed in the "Trades History" field - a green square highlighting the take profit price will appear in the line of the closed trade.

I would like to add that often traders replace the take profit with a trailing stop order (tralling stop). In some cases it is quite reasonable.

So, in the course of writing instructions for you about what a take profit is and how to set a take profit, we earned 25 cents. So, we did not work in vain 🙂

If you have any questions about the article or the take profit setting, please feel free to ask them in the comments. We will be glad to help you