Take Profit (TP)
Auto-order to close position at predefined profit level.
TP secures profit. Without it, greed ('goes higher') destroys gains. Set TP before opening, stick to plan. Partial TP (50% at +20%, 30% at +50%) lets you profit and still risk. R:R minimum 1:2.
In plain words
An order that automatically sells your position at a defined profit level. Without it greed ('it'll go higher') usually kills your gains, price reverses and you're back to zero. Pro traders set TP before opening the position, ideally in 2-3 batches at different levels.
Example
Long BTC @ $90k, SL @ $87k (-$3k), TP @ $96k (+$6k). R:R = 1:2. Hit 96k = auto-sell, +$6k. Without TP: BTC to 100k, you delayed, correction to 91k, exit +$1k. TP keeps discipline.
Also known as: take profit, TP