Take Profit Calculator

Formula

The formula to calculate the Take Profit (TP) is:

\[ TP = EP + (EP - SL) \]

Where:

$ TP $ is the take profit level.
$ EP $ is the entry price.
$ SL $ is the stop loss level.

What is a Take Profit?

A Take Profit is a type of order in trading that allows a trader to lock in a specified level of profit by automatically closing the trade once the market price reaches the set level. It is a tool used in risk management to ensure that potential profits are not lost if the market moves in an unfavorable direction. This order remains effective until the position is liquidated or the trader cancels the take profit order.

Example Calculation

Consider an example where:

Entry Price (EP): $100
Stop Loss Level (SL): $90

Using the formula to calculate the Take Profit:

\[ TP = 100 + (100 - 90) = 110 \]

This means that the take profit level for this example is $110.