Definition ∞ Take-profit orders are automated instructions to sell a cryptocurrency when its price reaches a predetermined target level. This order type is set by traders to secure gains from a successful trade by automatically closing a position once a desired profit margin is achieved. When the market price ascends to the specified take-profit level, the order executes at the best available price. It functions as a crucial tool for systematic profit realization.
Context ∞ The strategic use of take-profit orders is essential for disciplined trading and capital management in the cryptocurrency market. Significant concentrations of these orders above current price levels can act as resistance, as large sell walls form at those points. Analysts often consider take-profit levels when assessing potential price ceilings and market sentiment.
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