Profit Target

Risk Management

A predetermined price level at which a trader closes a winning position. Can be based on support/resistance levels, chart pattern projections, Fibonacci extensions, or fixed R-multiples.

Related Terms

Exit

The price and moment at which a trader closes a position.

R-Multiple

A trade result expressed as a multiple of the initial risk (R).

Risk-Reward Ratio

The ratio of potential loss to potential gain on a trade.

Learn More

Exit Rules: Taking Profits and Cutting Losses

Level 5: Building a Strategy · 22 min