What Is TP in Trading? The Complete Guide to Take-Profit Orders
If you have spent any time in trading communities, Telegram signal groups, or platform tutorials, you have seen the abbreviation “TP” everywhere: “TP1 hit, move SL to entry,” “set your TP at 1.618,” “three TPs, scale out at each one.” But if you are newer to trading, the obvious question remains — what is TP in trading, and why does every serious trader use it?
TP stands for Take Profit — a predetermined price level at which you close a trade to lock in gains. It is one of the two pillars of disciplined trading (the other being SL, or Stop Loss). In this guide, we will break down exactly what TP means, how take-profit orders work, how to calculate intelligent take-profit levels, and how mastering TP can transform your trading consistency. We will also share how Doin FX helps traders execute take-profit strategies with precision.