Assume that I go long 100 XYZ @ $1,000, and I want to close the position once the price reaches $1,100. I can see two options,
- I create a "sell limit order" for 100 units @ $1,100
- I create a "sell take profit limit order" with trigger price of $1,100 and limit price of $1,100
What is the difference between the two strategies?
The only difference that I can see is that with the second strategy, I may end up closing the position at a price higher than $1,100 whereas with the first strategy, I will close it at exactly $1,100 (provided that there are the conditions for closing the position)
Is there any other difference?