Orders and risk
Target
Also called: profit target, TP, T1
A target is a pre-decided price at which you book profit; a trade can have one target or several, with part of the position exited at each.
A target is the price at which you plan to take profit, fixed before you enter. It is measured from the entry, just like the stop-loss, and together the two define the trade: what you risk and what you aim to make. Without a target the exit is decided by mood, and mood tends to sell winners early and hold losers long.
There are two common ways to use targets. With a single target the whole position exits at one level. With scaled targets you split the exit: part of the position is booked at the nearest level, part at a further one, and the rest is left to a trailing stop-loss or a trend exit. The nearest target is reached more often; the further ones pay more when they are reached.
For derivatives traders there is a practical catch. To book in parts you need more than one lot, because a single futures or options lot cannot be split. With one lot you must choose one exit, and you should choose it before the trade, not while watching the ticks. Lot sizes are revised, so check the current NSE circular.
The common mistake is treating a target as a prediction. It is a planned exit, and price is under no obligation to reach it. The second mistake is cancelling the first exit because the trade looks strong, then watching price come back to the stop-loss. The third is a target so close that the reward does not justify the risk after costs.
Worked example
Scaled exits on 100 shares of HDFC Bank
Illustrative numbers: you buy 100 shares of HDFC Bank at ₹1,900 with a stop-loss at ₹1,880, a risk of ₹20 per share. The first target is ₹1,920 and the second ₹1,940. At ₹1,920 you sell 50 shares for ₹1,000 and move the stop-loss on the other 50 to entry. If ₹1,940 is reached, those 50 add ₹2,000, a total of ₹3,000 before costs. If price returns to ₹1,900 instead, you keep ₹1,000 and the second half exits at roughly nothing.
In WizeBuySell
WizeBuySell strategies mark the targets and stop-loss on your TradingView chart. Nifty Options Buying marks the exit as “Exit T1”. Shares Swing Trade books part of the position at TP1 and TP2 and exits the rest when the trend turns. BTC Options Buying sets its targets at fixed percentage steps, then a final exit. Placing the exit orders is your job; the software does not place orders.