Limit order - setting the limit of the price at which the trader wants to buy or sell the contract. One of the limit orders is the order take profit.

More about the limit order

A limit order is used when you believe that the price will turn around after reaching a certain level. For buy orders, this level will be lower than the current price, and for sell orders, it will be higher than the current price.

For example, let's assume that the AUD/USD currency pair is trading at 1.0937/1.0939.

You think that if the AUD/USD pair reaches the value of 1.0965, the Australian dollar will fall in price against the US dollar. Thus, you want to open a short position when the price reaches this level, and not trade at the current price.

You place a limit sell order for 10,000 AUD on the AUD/USD pair when the price reaches 1.0965. Thus, when the "bid" price of the AUD/USD currency pair breaks through the level of 1.0965, the order will be executed. And a new short position will automatically open for 10,000 AUD on the AUD/USD pair.