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Banana Farmer

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Learn/Glossary/Take Profit

Risk Management

Take Profit

Quick Definition

A predetermined price at which you close a winning position. Having a take profit level prevents greed from turning winners into losers.

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Related Terms

Risk-Reward Ratio

The relationship between potential loss (risk) and potential gain (reward) on a trade, expressed as a ratio.

Stop Loss

A predetermined price at which you exit a losing position to limit potential losses.

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