What is Take Profit Order 2023
By placing a take profit order the trader gains a certain freedom in the sense that he does not have to follow his charts closely during the day since the automatic take profit order is executed as soon as the market allows it.
Of course, it should not be ignored that the take profit order has a rather large opportunity cost, because crypto market prices can move beyond the predefined level while the position has already been closed at the start of the upward movement. or down, as the case may be.
In futures trading, take profit and stop loss are, above all, a means of managing risk and their values should not be set by chance. We must think of each trade as an independent affair and we must choose the risk / reward ratio that we expect when we enter a new position.
Experienced traders use the partial take profit method to increase profits and decrease opportunity cost, but we will discuss this method later.
The positioning of take profit is even more justified for markets with weak trends to guarantee the collection of profits. For markets with a strong trend the opportunity cost may be too high and it is advisable not to rush to set a take profit.