What is Take-Profit order on Forex

The essence of this order is to close the deal when the price reaches a particular point.
Most trading terminals support this type of orders, including MT4, provided by GoCapitalFX and other brokers.
Take-profit is an instrument for limiting greed. Correctly put, it closes the deal before the possible reverse of the trend, and fixes the profit. Otherwise, you can skip the right moment to leave the position and get nothing. Doing this manually is extremely difficult, because prices usually change fast.
Another advantage is the automatic execution. There is no need to stare at the monitor all day waiting for that one significant moment and keeping your hand ready to press the button. It’s not important whether you have internet connection, since the transaction is being made through the broker’s server, whether it is GoCapitalFX or any other.

To harm your trading with the Take-Profit, theoretically, is unlikely. But it will do you no good if put not close enough to the the expected price points, or, on the contrary, too far. As a result, shortfall or loss of profit leads to a negative outcome.
To correctly use this order, it is important to predict the movement of the market, which can be done by markets analysis. Tools for doing this can be found on the same platforms provided by brokers — GoCapitalFX among them.
There are some cases when using of Take-Profits is not necessary:
- If manual trading is more profitable than automated — in the case of long-term trading strategies.
- In cases where the stop loss will be more profitable — if unexpected reverse happens.
- With trend trading style — but there are some nuances.
You can place Take-Profit at the moment of opening a transaction or any time later. The first option is more convenient. Technically the algorithm is slightly different on different platforms. Most brokers offer MT4, and GoCapitalFX too. If at the entrance to the position for any reason the take was not installed, you can do this later in the transaction settings.
There are also several methods of defining how to use this order:
- on time,
- by levels,
- by volatility,
- on the waves of the trend, and others.
The method of placing should be chosen in accordance with the style of trading. But this is another topic.
In the meantime, we can conclude that the Take-Profit is a tool that greatly facilitates the life of a trader.