Take profit is an order set to automatically close a trade once the price reaches a specific profit target. It helps traders lock in gains without needing to monitor the market constantly. Take profit orders are often paired with stop losses to create a defined risk-to-reward setup.
Example:
A trader buys Bitcoin at $100,000 and sets a take profit order at $120,000. If Bitcoin reaches that price, the position closes and the $20,000 profit per BTC is secured.