What is Take Profit?

Take Profit (TP) is a strategy for automatically closing buy or sell orders, based on profit calculations. It indicates setting a target price level that aligns with the trader's satisfaction. This is done by placing buy or sell orders in advance. If the price moves in the desired direction according to the chosen position and reaches the designated price level, the position will automatically close the order, allowing us to efficiently lock in profits from the trade. 

Example : You bought XAU/USD at the market price of 1850.09 with a leverage of 30 with an amount of $3,000. 

• The platform automatically set it at 100% (with a rate of 1911.78 and an amount of $3,000.99). 
• You can set it with a minimum of at least 0.01% of the amount (with an amount of $0.49). 
• And a maximum of up to 1000% of the amount (with an amount of $29,999.68).

You can read, How to set a Take Profit on Woxa? and An open position on Woxa without Stop Loss and Take Profit settings. To understand Take Profit and trading by setting Take Profit on Woxa.

Advantages and Disadvantages : 

Advantages:

1. Guaranteed Profit: Take Profit helps you secure guaranteed profits from your investments by allowing you to set the price level at which you want to make a profit from buying or selling assets, as long as you are satisfied. This helps protect against losses when sudden changes occur in the market.  
2. Investment Planning: Take Profit enables you to plan your investments in advance. You can define your investment objectives and the appropriate Take Profit price levels accordingly.
3. Reduced Stress: Using Take Profit reduces the stress associated with buying and selling assets since you don't have to constantly monitor prices and can have confidence in buying or selling assets at your desired price. 

Disadvantages:

1. Missed Profit Opportunities: Using Take Profit may cause you to miss out on higher profit opportunities because prices may rush before you execute the buying or selling of assets.
2. Incompleteness: There may be cases where prices fail to reach the Take Profit levels you've set, and you may end up buying or selling assets at a lower price than expected.

In summary, Take Profit offers the advantage of securing guaranteed profits and investment planning, but it may lead to missed profit opportunities. It's important to consider these benefits and risks when deciding to use Take Profit in asset trading or investment.