Take Profit

An order to close a trade once it reaches a certain profit level.

Detailed Definition

A take-profit order specifies the exact price at which to close out an open position for a profit. If the price of the security does not reach the limit price, the take-profit order does not get filled.

Related in General Trading

Ask Price

The lowest price a seller is willing to accept.

Margin

The money borrowed to purchase an investment.

Asset Allocation

Dividing an investment portfolio across different asset categories.