How to use eToro’s ‘take profit’ feature without closing your positions
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In our eToro review, we’ve explained many of the features available while using the platform. This page explains how to close out your position if it’s in profit automatically. Read on to learn what a take profit order is and how to use it.
What is take profit (TP) on eToro?
A take profit is a type of limit order that automatically closes out a position at a specific price for a profit. With many brokers, using a take profit is optional; however, when trading with eToro, it is mandatory on every position except for non-leveraged buys.
The main advantage of using a take profit is your position will be automatically closed as soon as your intended profit target is reached. This means you do not have to sit watching the markets and can use a ‘set and forget’ type of trading strategy.
The main downside to using a take profit is it will not be filled if the market does not reach the limit order’s price. You also run the risk of missing out on a much larger move if your take profit is set too conservatively.
How to use take profit on eToro
As mentioned above, using a take profit is mandatory with almost all types of trading on eToro. Understanding how to set it is an important part of setting your orders. A take profit is essentially an instruction from you to eToro about when to close your position for profit. Here are the steps you need to take to use a take profit (TP) on eToro.
- Log into your eToro account and use the search bar to find the asset you want to trade.
- Click the trade button to open an order ticket. Enter the amount you want to trade, choose your leverage, and set your stop loss.
- Click on Take Profit and set your TP to a specific price. You can either manually enter a price or use the + / – buttons to adjust.
- If you do not want to set a specific price, you can press the ‘Amount’ button and set your TP as a monetary value. Use the + / – buttons to adjust the amount, or enter it manually.
- When you’re happy with the order details, click ‘Open trade’ and your position will be live.
How to adjust the take profit (TP) while a trade is open
There may be times when your analysis changes and you want to adjust the take profit while a trade is open. It is possible to change the eToro take profit level while your position is live and you can follow the steps below to learn how to do it.
- Select the portfolio tab from the left toolbar while logged into your eToro account.
- Find the trade you want to adjust and click on it.
- Click ‘take profit’ and make the changes you want to.
- Click update and your new take profit level will be live.
How to set your own take profit
When setting your TP, you can use various strategies to find the most optimal level to close out your position. Below we have highlighted a few methods you can use to help set take profit orders.
- Support and resistance levels. One of the most common ways to take profit is by using support and resistance levels. Support is a price level that has failed to break numerous times and is ‘supporting’ the market. Resistance is a price level that has failed to break to the upside and is ‘resisting the market. Both can be good TP levels.
- Previous highs and lows. Often the price of an asset will make a high or a low before moving away from it. These highs and lows are typically traded back to and make for good levels to take profits.
- Moving averages. Moving averages are technical tools that plot the average price of an asset over a specific time period. Moving averages are commonly used by traders and often act as support or resistance. Price generally returns to a moving average, making them easy TP levels.
- Price patterns. Many traders use candlestick charts to analyse the markets and patterns in price can be a good indicator of what’s to come next. You can use a previous candlestick pattern to determine a take profit level.
Can you use a take profit when copy trading on eToro?
Yes, when you use the eToro copy trading feature, your trades will mimic the account you are following. This includes entry price, stop loss, and take profit. Once a trade has been copied to your account, you can adjust the stop loss and take profit levels. You can do this by clicking on the open trade in your portfolio and making the changes you want.
The minimum take profit on eToro varies depending on the asset you are trading but is generally 1 point or 1 pipette away from your entry price. You can easily check what the minimum take profit is by continuing to click the minus (-) button when setting the level. A notification will show you the lowest TP level you can set.
Yes, eToro does not charge any fee for setting a take profit.
The maximum take profit you can set on eToro is 1000% of the position amount. However, you can continue adjusting your TP as your trade moves into profit.
Yes, in fact, using a TP on eToro is mandatory except for unleveraged buys. Regardless, using a take profit is still worthwhile as it has many benefits. You do not need to sit in front of the charts continuously monitoring prices if you use a take profit, as your trade will be closed automatically.
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