A take profit order is a type of order that is executed once the trade has reached a certain level of profit. A take-profit order is often placed in tandem with a stop-loss order to manage open positions. A stop-loss order and a take-profit order can be placed together as a pair in a bracket order attached to an open position or open order. In this case, whenever either of the take-profit or stop-loss order is triggered, the other one is cancelled. Read more on Bracket Order
here.
On Delta Exchange, a Take-Profit order is triggered off mark price and once triggered, it results in a market order being placed to close the associated position. The main advantage of a take-profit order is that a trader will not have to monitor his position closely to lock profits. The obvious drawback to setting up a take-profit order however, is that the trader will not be able to capture any upside beyond the pre-decided take-profit level.
How to set a Take-Profit on Delta Exchange
Open Position
A trader can place a take-profit order from the positions tab to an already open position. Click here to know how to place an order from the Positions Tab.
While placing an Order
Once a trader has decided to place an open order, the option of placing a take-profit is also available. The traders will check mark the bracket order option and fill in the details for the take-profit levels.
However, if a trader chooses not to place a Take-Profit while placing an open order, the trader cannot modify the order whilst it is still an open order. The trader needs to wait for the order to become a position and then place a Take-Profit order from the positions tab. Essentially, a Take-Profit order is always placed in link with Open Positions or placing a New Order.
The following video below showcases that it is not possible to place a Take-Profit Order from an Open Order.
Selecting Take-Profit Levels
While placing a Take-Profit Order, the trader can decide the ROE they wishes to earn on that trade. Delta Exchange provides the ROE option which ranges from 25% to 200%. Once you have selected the ROE levels, it also shows the trader their PnL in case the trade closes there.
