Meaning of Take-profit Order and how it Works
A Take-profit on Webull is a type of limit order that specifies the exact price at which to close out an open position for a profit. If the price of the security does not reach the limit price, the Take-profit order does not get filled. It is used to lock profit on an existing position once a specified price is reached. It fills as a limit order once triggered.
Most traders use Take-profit orders in conjunction with stop-loss orders to manage their open positions. If the security rises to the take-profit point, the Take-profit order is executed and the position is closed for a gain.
The benefit you get from using a take-profit order is that the trader doesn’t have to worry about manually executing a trade or second-guessing themselves. On the other hand, Take-profit orders are executed at the best possible price regardless of the underlying security’s behavior.
The Take-profit on Webull are best used by short-term traders that are interested in managing their risk. This is because they can get out of a trade as soon as their planned profit target is reached.
A stop-loss order is designed to prevent further losses on the existing position once a specified price is reached. It fills as a market order.
How to Set Up Take-profit Order on Webull
- Click on new entry on your Webull screen.
- You set your limit price and TIF as you want.
- You put your strategy on 1st Trigger Stop.
- An option for Take-profit and Stop loss order will be out. You choose the Take-profit order.
- Click on the Take-profit.
- Select the stop price of your choice and the limit price for your take-profit.
- You can now place your order and buy the market.
- Then you can adjust(Drag) the chart to the price you want it.