Take profit - How to secure profits in digital market trading

Take profit is one of the key strategies that all traders should know to systematically manage their positions. Along with stop loss, it creates a complete capital protection system. By setting take profit levels, you can exit a trade at the optimal moment and secure your profits against unexpected market changes.

This strategy involves pre-determining the price at which you want to close your position and take your profit. The system will automatically place an order when the market price reaches the specified level, eliminating emotions from the trading process.

How take profit works in practice

Take profit, together with stop loss, allows you to effectively manage risk in a volatile market. You define two prices in advance—one to secure profits (take profit) and another to limit losses (stop loss). When the market price hits either of these levels, the system automatically executes the order without your intervention.

There are two types of such orders: stop orders (which freeze the deposit) and trigger orders (which do not block your funds). This difference is important when planning your strategy, especially if you manage multiple positions simultaneously.

Why take profit is essential for risk control

Many traders struggle with deciding the right moment to close a position. Take profit solves this problem by allowing you to act according to a pre-developed strategy instead of succumbing to emotional fluctuations. When prices move in your favor, a take profit order helps you lock in gains and prevent losing the profits already achieved.

On the other hand, when the market reverses, a stop loss protects your position from significant losses. Together, these two strategies form a solid risk foundation—one of the most important elements of long-term trading success.

Important principles when setting up take profit and stop loss

When placing these orders, keep in mind a few key points:

• The threshold price must be reached—if the market price never hits your set take profit level, the order will not be automatically placed.
• Order execution changes the position status—if the take profit is triggered, the existing position will be closed or a new position will be opened according to your settings.
• Price limits apply—if your set order price violates the price limit rules, the system will execute the order at the highest or lowest available limit.

Situations that may prevent take profit activation

Sometimes, a take profit order may not be executed despite the market reaching your target level. The main reasons include:

• Exceeding amount limits—if the position value exceeds the maximum allowed limit, the order will not be executed.
• High market volatility—during rapid price changes, the system may not be able to execute the order immediately, as take profit uses the current market price to place the order.
• Conflicting orders in the system—if you have simultaneous orders in opposite directions, they may open a new position before the take profit activates, causing issues with margin verification.

In situations where you want to close all positions immediately, select a specific position and use the “Close All” option instead of relying on an automatic order.

Disclaimer: This content is for informational purposes only and does not constitute investment, tax, or legal advice. The digital asset market involves high risk, significant volatility, and potential loss of value. When making trading decisions, consider your current financial situation. If in doubt, consult with an investment, tax, or legal professional.