Take-Profit

A take-profit level is the price at which you decide to sell a winning position. Traders place it at a resistance level, a measured move from a chart pattern, or at a multiple of the amount they risked, so the reward is known before the trade starts.

The target and the stop together define the trade's risk-reward ratio. Some traders sell in parts, taking some profit at a first target and letting the rest run with a raised stop; this trades a smaller best case for a smoother result.