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Take profit orders or T/P are orders just reverse of stop-loss orders. These orders are practiced by forex traders to close positions when a profit level is reached. Take profit orders includes a take-profit point, which is specified as the number of pips or exchange rate from the current trading price point. When take-profit point is reached the trade is closed locking the profit from the trade.

Take profit orders are practiced by traders when they are sure about market/price direction to a certain price level, but unsure beyond that price level. They also come handy when the trader is trading extensively on margin, and when the forex trader lacks time to monitor the trade. Some forex traders place take profit orders for fixed pips change for a currency pair, while others increase or decrease their pips range according to fundamental and technical analyzes.

For example, if a trader buys $1000 worth Yen when USD/JPY is at 104.668, which is 104,688 Yen and places a take profit order at 105.50, then if the USD/JPY touches 105.50, the order is executed for 105,500 Yen, with a profit of 812 Yen or $7.6969.

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