A Take Profit order closes your trade once it reaches a certain level of profit.
On CEX.IO BROKER, you can put a Take Profit on any order. It allows you to limit the loss and lock in the profit on your Long and Short positions.
To set a Take Profit order, in the new order window, tick the box for Protection Orders and set a Take Profit price.
A Take Profit order is similar to a Limit order.
The difference is that a Take Profit order is filled fully, with possible price slippage.
A Limit order is filled at the specified limit price or better; however, it may be filled only partially.
Let's see how Take Profit works on an example.
Take profit on a short/sell position
Let's say you want to open a short/sell position for 0.1 BTC once the price hits $6700. To fix your profit if the price goes down, you set the take profit price at $6500. Once the market touches this price, your position will be filled and your profit fixed.
Pay attention that in this case, take profit on your short position will be triggered when the Ask price reaches the price you specified.
Take profit on a long/buy position
Let's imagine the current market price is $6500 for 1 BTC. You open a buy position for 0.1 BTC at $6500 and want to set take profit in $6700. Once the market reaches $6700, the system executes your order and your profit is fixed.
A take profit order helps you not miss a profit opportunity when you can’t closely watch your trades.
Pay attention that in this case, take profit on your long position will be triggered when the bid price reaches the price you specified.