Take profit orders are available as primary or as conditional close orders via the advanced order form on Kraken.com and on our trading interface trade.kraken.com.

When the last traded price touches the profit price, the take profit order will execute immediately as a market order and will incur taker fees upon execution. 

Note that, since a market order is created when your profit price is reached, your order may fill at a lower (in case of a sell) or higher (in case of a buy) price than the profit price. For markets with high volatility and relatively low liquidity, like cryptocurrency markets, it is likely that your fill price will be significantly lower or higher than your profit price. 

Take profit: Triggers a market order (buy or sell) when the last traded price hits the profit price you specify.

Profit price: The price at which the take profit order triggers, specified by you.

The profit price can be set in terms of absolute price or as a percentage. As with stop orders, take profit orders can also be used to open positions (see examples for illustration). It is important to note that your take profit order is not directly tied to a position (not reduce only) but is an independent order and if you exit a position in an alternate way the take profit must also be manually cancelled.

Regular limit orders can also be used as a way to take profits. Here is how the two order types differ:

Both order types can be used with unleveraged spot trades or long or short positions (resulting from spot trades using margin).

The order conventions are similar to a limit orders. For a buy take profit, you would set the profit price below the market price. For a sell take profit, you set the profit price above the market price. If these conventions are not followed, the order will execute immediately. 

Suppose you bought BTC at $10,000 and want to set a profit target at $12,000. You can create a take profit limit sell order with a profit price of $12,000. You could achieve a similar result with a limit sell order at $12,000. However, if you want to sell at market once the highest bid price reaches $12,000, this can be done by creating a take profit order with a profit price of $12,000. In this scenario, your average fill price on the sell order could be below $12,000.

Take profit orders can also be used to open positions. Suppose you want to open a short BTC/USD position at market once the highest bid price rises to $12,000. You can do this by creating a take profit sell order at $12,000.