Take Profit
A resting order that closes a winning position automatically once your target price is reached.
A take-profit is the mirror image of a stop-loss: a limit order placed at the level where you want to bank the trade. When price touches it, the position closes at that price or better, with no discretion required in the moment.
Its real value is behavioural. Left to decide in real time, most traders cut winners early out of anxiety and let losers run out of hope. Setting both exits before entry fixes the risk-to-reward ratio of the trade while you are still thinking clearly.
That ratio is what makes a strategy viable. Risking 30 pips to make 60 is a 1:2 profile that only needs to be right roughly a third of the time to break even. Some traders scale out - closing part of the position at a first target and trailing the rest - to balance certainty against upside.