What is a take profit order in crypto?
A take profit order closes a crypto trade automatically when the market reaches a price you set. The price you get can differ from your target.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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- It triggers when the market reaches your chosen price.
- On spot it sells; on futures it closes the position.
- A stop-loss limits losses; a take profit locks gains.
You pick the target price, and the exchange watches the market for you.
How a take profit order works
A take profit order is conditional. It waits for the market to reach your trigger price. On a spot exchange it places a sell. On a futures exchange it closes the position.
How traders use take profit orders
Traders set a take profit order to lock in a gain at a price they chose before the market moved. The order watches for them.
- Lock in a gain at a set price.
- Avoid watching the market all day.
- Set it right after opening a trade.
- Pair it with a stop-loss.
Take profit vs stop-loss
A take profit order and a stop-loss both close a trade, but they aim at opposite outcomes. A take profit seeks a gain; a stop-loss seeks to limit a loss.
Take profit execution limits
When the trigger is reached, the exchange sends your order to the market. You choose the execution type. A market execution takes the best price available. A limit execution sets a worst price you will accept.
Frequently asked questions
No. The trigger starts the order, but the price you get depends on the market and the execution type.
The order waits. Your trade stays open, so its profit or loss keeps changing until you cancel or the trigger is reached.
You can usually cancel or edit a working order before it triggers. Check your platform's rules for changes.
No. A limit sell order sits in the order book at your price. A take profit order waits for a trigger before sending an order.
