What Is a Take Profit Order and What Does TP Mean in Trading?

A take-profit is an order that automatically closes a trade at a predetermined price to secure profits. For a long position, set it above the entry price; for a short position, set it below. Setting a take-profit is optional, but it helps close a trade quickly when you cannot do so manually. In this article, you will learn what TP means in trading, when to use it, and how to calculate the take-profit price.Major TakeawaysWhat is a Take-Profit order? A take-profit is a pending order used to