Take Profit

A take profit is a preset instruction to sell or close a crypto position when the market reaches a price that locks in a desired gain. Traders use it on spot or derivatives exchanges to avoid having to watch the market constantly and to reduce the chance of letting emotion override a plan. It is the profit-side counterpart to a stop loss, which is designed to limit losses if the price moves the other way.

For example, if someone buys ETH at $2,000 and sets a take profit at $2,300, the exchange may automatically sell when ETH reaches that level, capturing the planned gain before the price can reverse. Some traders use one take-profit level, while others split a position across several targets to lock in gains gradually. Take-profit orders do not guarantee the best possible exit, and in fast or illiquid markets the filled price can differ from the target, but they help make trading plans more disciplined and easier to execute.