Take Profit Order - A Quick Review And How It Works?

By Author: Growlonix
Total Articles: 11
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No wonder that crypto trading market has received an overwhelming response in 2024. It was turned out to be quite a promising year for a significant number of cryptocurrencies. All this has grabbed the huge attention of the novice and experienced traders.

But what’s next in 2024?
Cryptocurrencies will definitely hit all-time high prices followed by big drops. When investing in cryptocurrencies, setting up different and successful strategies is highly important. When traders place their trades, they have no idea about the market price trends.

Exit strategies and trade management are equally important. This is something which requires a lot of attention from traders to earn good profits. As the crypto trading market is highly volatile, it’s important to automate the trades. The best way to multiply your profits is to have the right strategy in place.

There are different types of orders which traders may use to earn good profits. One such order type that traders can use while trading cryptocurrencies is Take Profit order. Growlonix is one of the best trading platforms that allow traders to play ...
... and win the crypto trading game smartly. The platform offers advanced orders types, trading bots, and automated tools to help traders identify the optimal moment of exit. Using take profits, stop-loss, stop sell, and trailing orders are the best ways to preserve profits.

Let’s have a look at some popular tools that one can use at Growlonix to earn profits with their trades:

Take Profit
Take profit orders are intended to lock in the profits of traders at the specified price, or potentially to limit further losses after a substantial gain.

What is a take profit order? As the name suggests, this order type allows traders to sell the assets once it reaches to a certain level of profits. And, selling the asset at this price ensures that you will earn profits for sure.

Take profit order strategies are quite popular among those traders who place short-term trades in the marketplace to feed off the fluctuations in the cryptocurrency values. However, with such market fluctuations or volatility in the market, it could be quite tricky for some traders to know when to exit the trades. And, there could be chances that they’ve missed the perfect opportunity to exit the trade and their gains are lost.

A take-profit order closes your open position for a profit whenever it reaches the predetermined value or percentage of profit. Setting a crypto trading bot at Growlonix allows its traders to place trades smartly and earn profits.

There are different strategies that one can adopt with the take profit orders. This order type allows the trader to set a target profit price that further ensures that the trader will make a profit on this trade. This order type allows the traders to maximize their gains. Generally, this order type specifies a predefined price which is chosen by the trader above the buying price.

If the price of the crypto asset you are trading reaches to your set limit, it will trigger a sell order automatically to exit the trade. So, take profit order is a kind of limit order where the trader can buy the crypto assets at a low price or sell them at a higher price.
Let’s understand how it works with an example:
Let’s say a trader buys ETH at $5,000, and puts take profit +10% which means, he has created an order to sell ETH at a price of $5500.
For a while, the stock ETH traded within the range $5000, and then continued to grow. Upon reaching $5500 or above, your pending order with take profit +10% will be filled, and the system will close the trade with a sell order.

Here your total profit comes out as $500.
How take profit order works?
Most often the traders use this order type in combination with stop-loss orders to limit their losses and maximize their gains on the trade. Take profit orders are also popular as limit order and sell limit orders among the traders.
For a buy take profit order, the trader may set the profit price just below the market price. And, for the sell take profit, he needs to set the profit price above the market price. The profit price can be set in terms of absolute price or percentage.

Another example:
Let’s Say, a trader has 1000 coins of any asset purchased at $500 per coin. The trader believes that its price will go up in some days, so he will put a take profit order which specifies that if the price reaches to $550 per coin, a sell order will be triggered immediately.

So, this order type allows the traders to limit their risk or exposure to the market by exiting the trade as soon as it shows a favorable take profit price for you. Setting this order type requires a technical analysis of the asset’s price/value from the traders along with the likely movement of the market which includes chart pattern analysis, daily or weekly pivot point, and average true range. And, all this is not possible without expert knowledge. You need to watch the trends continuously, but setting a crypto trading bot at Growlonix will automate your trades.

Growlonix allows you to automate the trade using T/P order as an exit strategy based on the profit-loss calculations. Using this order type, you can minimize the risk and avoid emotional decision-making. Automating the trade will execute the orders instantly without tracking the performance manually.

How to place take profit order at Growlonix?
• Create an account on Growlonix and login.
• On the Settings page enter your API Key and secret key.
• Select exchange. (A drop-down menu on the top left)Select Take Profit/Take Profit Limit order type.
• Select Base and Quote coin. E.g. BTC/LTC
• Select the number of coins you want to sell. E.g. 5/10/20 coins (the quantity could be in a fraction too)
• Click on the drop-down menu near take profit. It will show three options as market, limit, and trailing. Selection of an option means when the market price rises to the set stop value, the selected order will be executed like Limit sell, market sell, or the trailing stop sell.
• Note: Always make sure that the stop value is higher than the current bid price.

Apart from, take profit orders, the traders can also take advantage of the trailing take profit orders on the exchanges to get the most out of their investments.

Trailing Take Profit
This is an advanced version of take profit order where the trade remains open and continues to earn profits as long as the price is moving in favorable direction. If the price moves down or changes its direction and the change surpasses the previously set percentage, the order will be executed as market order. The order will be sold completely at the best price at a particular moment.

In this order type, your position will not close even if the take profit value is reached. Trailing take profit order continues to follow the price trends of the crypto asset, and with the slightest movement back, it will close the trade with huge profits.
If Trailing take profit moves up, it will not move back. Thus, it’s one of the most profitable order types which will prevent losses.
Can I use trailing feature on buy and sell side with Trailing orders?
Of course, yes!

Trailing Buy
When the traded price of an asset reaches the trigger price, trailing will be activated. As long as the price moves down, your trailing stop buy order will follow the trend, resulting in buying the crypto asset lower than the set initial price. Once the price of the asset changes its direction and this change exceeds the previously set percentage, the order will execute.

Trailing Sell

It is just the reverse of the Trailing Buy order. As long as the price of the crypto asset is increasing, your sell order will follow the price resulting in selling the asset higher than the set initial price. Once the price changes direction and this change exceed the previously set percentage, a trailing stop sell order will be executed.
How does trailing take profit works?

For example:
Suppose, you buy BTC at $1000, and you set a take profit at $1100 and a trailing take profit at 5%.
If the price for BTC moves up to $1050, nothing will happen to the trade as it has not met/reached to the take profit value of $1100

• But if the BTC price moves up to $1100, a stop order at $1045 is set.
• If price moves down to $1050, the stop order will stay at $1045
• Now, if the price moves to $1200, the stop order will move to $1140
• Again if the price moves down to $1100, the stop order at $1140 will be executed.

Here, if you haven’t set the trailing take profit, buy order would have been sold at $1100. Thus, you will loss the opportunity of earning $1140. But as you have set trailing take profit, you will earn more. Growlonix is an advanced crypto trading terminal that allows its traders to set trailing take profit orders to earn more profits.

Another example:
Suppose you bought ETH at $100, and set take profit at 10%, and closing price with a profit of $110. If the price reaches to this level, your profit without trailing take profit order will be just $10. However, if you enable Trailing Take profit (TTP) in settings, everything will be different. Let’s understand how:
For TTP, the trader has to define another parameter Trailing limit which means how much price is allowed to fall from peak before selling an asset.

So, TTP order will let you maximize the profits and exit the trade at the right time. Here in the above example, Take profit order will allow you to earn profits of $10, but with TTP you have earned more than $19.
Growlonix allows its traders to set TTP order to maximize their gains and protect in losses. These are the best tools to earn while trading cryptocurrencies. But, you need to make sure that risks are associated with them and it’s better to test different approaches using trading bots to find the best one.

Conclusion
So, you cannot avoid using Take profit and Trailing take profit orders to maximize you gains and reduce the possible amount of losses. You can use crypto trading signals provided by Growlonix to earn more. Whenever, you receive a signal, you may set it to control the expected gains or losses.