What is a take-profit order?
Take profit (T/P) is a final word in your deal, when the time comes to actually take your profit.
It’s a sell (for a long strategy) or buy order (for a short one) when the certain price is reached.
These are the factors that affect the take profit price:
- Take profit value - obviously the more you want the higher price should be reached;
- Exchange fee - make sure you don't follow the scenario where the fee is more than the profit you get;
- Extra orders - each time an extra order is executed bot recalculates the take profit price so that it would be easier to reach.
USDT-BTC-Long bot starts the deal with 0.2% take profit.
Bot makes first order, Volume: 0.00091 BTC (9.07 USDT) Current BTC price: 9974.15 USDT
Calculates the take profit price. BTC should reach 10014.05 USDT to get 0.2% profit and cover the fee.
The price reaches the take profit price and trading bot sells BTC back bringing you 0.018 USDT profit.