A take profit order is used to lock in profits if the market moves in your favour. If the price reaches a take profit level, the position will be closed automatically.
Take profit orders are useful when you are unavailable to monitor your open positions.
If you take a long (buy) position your take profit level will be higher than the price at which you bought. If you take a short (sell) position your take profit level will be lower than the price at which you sold.
