TP Meaning in Text (Trading Words)

TP Meaning in Text (Trading Slang)
In trading, “TP” stands for “Take Profit.” It’s a key term used by traders in forex, crypto, and stock markets to mark the price level where they want to automatically close a trade to secure profits. Once the price reaches the set TP, the position closes, allowing the trader to lock in gains without manually monitoring the market.

For instance, if you buy Bitcoin at $60,000 and set a TP at $62,000, the trade will close automatically when the price hits that level, ensuring you earn profit before a potential market reversal. “TP” is often used together with “SL” (Stop Loss) as part of a solid risk management strategy.

So, when someone says “I hit my TP,” it means their trade successfully reached the target price. Understanding TP helps traders manage risk, set clear goals, and trade more effectively in fast-moving markets.

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