What is to Take Profit?
To take Profit means that you are exiting a trade after you have had the amount of profit you targeted to achieve from that specific trade.
It means that you have had enough profits and now you can end such a deal and bag the accumulated profits as you look for other better trading opportunities.
Olymp Trade provides you with various ways in which you can take profit.
Some of them are known to you while others, may only be used by experienced traders.
Automatic Expiration of Fixed Time Trades.
When you are trading Fixed Time Trades on Olymp Trade, you might not have much power over where to take your profits.
However, you have all the power to decide when to take your profits. This is made possible by having various options for trade durations to choose from.
Trades range from 1 minute to 23 hours of duration on Olymp Trade.
So if you choose 5 minutes as your trade duration, once you place a trade, it will automatically end after 5 minutes.
What all that means is that you will automatically take your profit if you win the trade, after the specified trade duration expires.
The Use of Take Profit Orders.
Are you trading Forex on the Olymp Trade Platform? Then you must have seen that the platform not only gives an option to adjust your Stop Loss but also another to adjust your Take Profit.
To take profit trading Forex on the Olymp Trade Platform, follow the following steps:
- Log in to the Olymp Trade Platform.
- Choose the Assets Tab.
- Select Forex Mode and not Fixed Time Mode.
- Locate the trade adjustment tab which brings you a Pop-up.
- On the Pop-up, hit the Stop Loss/Take Profit (–/–) button.
- Adjust your Take Profit along with your Stop Loss – here, you can choose to adjust the two orders in terms of either currency or the price level.
- Return to the interface and place your trade by hitting either up or down according to your analysis.
Are you trading Forex on the Olymp Trade MetaTrader 4? Then you must be conversant with how Take Profit is adjusted along with the Stop Loss order.
To take profit trading Forex on the Olymp Trade MetaTrader 4 platform, follow the following steps:
- Open your Olymp Trade MetaTrader 4 Platform.
- Decide the direction to place your trade and the trade parameters.
- Hit the Trade Execution tab.
- Choose what kind of trade execution you want – market, buy limit, sell limit, buy stop, or sell stop.
- Adjust your lot size.
- Locate the Stop Loss button first and then the Take Profit button beside.
- Adjust your Take Profit along with your Stop Loss.
- Enter your trade by hitting either sell or buy according to your analysis.
That is how simple it is to take profit using the Take Profit Order option when trading forex on the Olymp Trade platform and MetaTrader 4.
The Use of Trailing Stop Loss.
A Trailing Stop Loss is a Stop Loss that moves along with the price as the price moves in the direction of your trade. That way, if the price reverses against your trade, you have no reason to worry.
You realize that at times, the price may move significantly in your favor.
However, just before it can hit your Take Profit target, it reverses in the opposite direction, canceling all your gains and going further to hit your Stop Loss.
If that happens, you are knocked out of a once-profitable trade for the simple reason that the price missed your Take Profit by a millimeter.
It is in circumstances like these where a trailing stop loss comes to your rescue to help you take your accumulated profits even if your Take Profit Order is not activated.
As of now, Automatic Trailing Stops are only available for tournament achievers and other high profile account owners.
That kind of automatic Trailing Stop Loss works by ensuring that you do not lose your accumulated profits beyond a certain level. If it is set at 10% of the trade amount, for example, it will ensure that your trade closes after the equivalent amount is lost from your accumulated profits if the price reverses without hitting your target.
Far from that automatic Trailing Stop Loss.
You can manually design a trailing stop loss. The limitation of the Manual Trailing Stop Loss is simply that you have to keep eye on your trade to keep adjusting.
Here, you keep adjusting or moving your original stop loss up or down according to the direction of your trade.
The further the trade moves, the further you take your stop loss so that in case of a significant reversal, you lock the profits accumulated up to that level of the stop loss.
Caution needs to be taken so that you do not set or move your Trailing Stop Loss too close to the price because slight retracements may hit it.
And as sure as death, if that happens, you will be knocked out of an otherwise growing trend that you would have profited from.
Be reasonable in moving your Trailing Stop Loss and keep it at a reasonable distance from the current price to allow it to retrace and keep going in your favor.