What is Take Profit on US Stocks?

Take Profit allows you to sell your assets using a limit order once the market price reaches a certain price point, known as the stopstop price. Using a Take Profit order, you can set your assets to be automatically sold once they reach a certain profit level. Similar to stop loss, you can add a take profit order as an Exit Strategy when creating a buy order, and the take profit order will be automatically triggered once the buy order is completed/successful.

Example:

You buy shares of XYZ company at $100.00 per share. You want to lock in an automatic profit if the price rises to your target level, without having to constantly monitor the market.

You then set the Take Profit (stop price) at $120.00, which means you want to automatically sell the stock using a limit order, if the market price rises and hits $120.00.