Profit taker

When you place an order to buy an stock, you can hold position (Not resell it) until you like. However, when placing an order, you could make your mind in advance about how much you want to gain from the trade if the price has gone high enough for your liking. This selling price is call a “profit taker”.

Figure 2.16: Profit taker

When shorting, you will place a high profit taker to buy at a lower price.