Take Profit

A take-profit order automatically closes your position when the price reaches your target profit level. It locks in gains without requiring you to monitor the market constantly.

How Take-Profit Works

1. You open a long BTC position at $50,000 2. You set a take-profit at $55,000 (10% above entry) 3. If BTC rises to $55,000, your position automatically closes 4. Your profit of $5,000 per BTC is locked in

Take-Profit and Risk-Reward Ratio

The relationship between your stop-loss and take-profit determines your risk-reward ratio:

• Stop-loss: $49,000 (risk: $1,000)
• Take-profit: $52,000 (reward: $2,000)
• Risk-reward ratio: 1:2

A minimum 1:2 risk-reward ratio means you can be wrong 60% of the time and still profit.

Best Practices

• Set take-profit at logical levels (resistance, round numbers)
• Use with stop-loss for complete risk management
• Consider partial take-profits (close 50% at first target, let rest run)
• Don't be too greedy — taking consistent smaller profits beats hoping for home runs