What is eToro Take Profit (TP)?
Take Profit (TP) is an instruction or limit order that determines the exact price at which an open position should be closed for a profit. To simply put it, Take Profit orders are set on eToro to automatically close an open position for a profit when it reaches a specified amount.
You can decide to specify a Take Profit after your trade has been opened and it is completely optional. This tool is mostly used by short-term traders on eToro for risk management. This is because they can automatically exit a trade as soon as their intended profit target is met and avoid running the risk of a potential market decline.
The eToro TP order will not get filled if the security does not reach the limit price. In a fast-paced market, your Take Profit order may not be traded in the market. The Take Profit will be triggered at the next available rate in this situation. As a result, you can gain more than you anticipated from the trade.
Generally, the essence of an eToro TP order is to help traders minimize risk. Please note that Take Profit orders are not accessible on US stocks on eToro.