Take-Profit Order (TP)

A take-profit order is a trading order which instructs a broker to sell securities when their price reaches or exceeds a predetermined level. Take-profit orders can be used by investors to stipulate a price at which they would be willing to sell their shares.

A take-profit order defers from a stop buy order in that securities are sold when the limit is reached or exceeded.

With a stop buy order, securities are bought when the limit is reached or exceeded. A buy limit order, on the other hand, is used to set a maximum amount which an investor is willing to pay for securities, and securities are only bought if rates fall to or below that limit.

More on this topic:
Swiss online trading platform comparison
Popular order types explained

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