What is a Worked Example of Multiple Targets?

Direct answer

A worked example of Multiple Targets shows how one position can exit in parts at several predefined profit levels (take-profit prices). The key idea is not the market prediction; it is the order behavior: when a price reaches a target level, a portion of the position is closed according to the setup rules you assume.

Mechanics: what Multiple Targets means

Multiple Targets usually refers to a take-profit plan with more than one target price for the same underlying position. A simple way to formalize it for an example is:

You start with one position size (for example, 1.0 lot or 100 units).
You define multiple take-profit prices: TP1, TP2, TP3, etc.
You define what fraction of the position closes at each target (for example, 40% at TP1, 30% at TP2, 30% at TP3).
You assume a rule for the remaining portion after a partial close (typically: it stays open until its own later target is hit, or until it is closed by another rule).

Stable mechanics (the parts you can verify from your order rules) are:

target prices you set,
how position size is split,
what happens after each partial execution.

Variable conditions (the parts that can change outcomes) include spreads, execution quality, whether targets are filled exactly at the price you set, and the provider/platform’s handling details.

Worked numerical example (with explicit assumptions)

Assume the following to make the example independently checkable:

Assumptions

Position size: 100 “units” total.
Entry price: 1.20000.
You place three take-profit orders with Multiple Targets.
Split of position size: 40% closes at TP1, 30% at TP2, 30% at TP3.
Target prices: TP1 = 1.20200, TP2 = 1.20400, TP3 = 1.20600.
Price moves cleanly upward and touches each target in order: TP1 first, then TP2, then TP3.
No other exits occur before TP3 (no stop-out, no manual close).
Costs (spread/fees) are ignored for calculation simplicity.

Calculation of realized price-distance

For each portion, compute the price move from entry:

From 1.20000 to TP1 1.20200: move = 0.00200
From 1.20000 to TP2 1.20400: move = 0.00400
From 1.20000 to TP3 1.20600: move = 0.00600

Convert to per-portion profit units (relative form)

To keep this generic and not tied to any contract specification, express profit in “unit-price-move times portion” form:

Profit component at TP1 = portion 0.40 × move 0.00200 = 0.000800
Profit component at TP2 = portion 0.30 × move 0.00400 = 0.001200
Profit component at TP3 = portion 0.30 × move 0.00600 = 0.001800

Total relative profit = 0.000800 + 0.001200 + 0.001800 = 0.003800

What you can verify

If your platform’s Multiple Targets rule really does close 40/30/30 at those exact prices, then the relative profit components above should match the realized exit prices and executed fractions. If your rule differs (for example, if it leaves a smaller remainder after TP1), the split changes and so does the total.

Limitations and risks (material failure modes)

Even if the setup is clear, Multiple Targets can produce different outcomes due to operational and market realities:

Partial execution may not match the planned fractions. Some systems may partially fill or handle order updates differently, so the actual closed size at TP1 can differ from the intended 40%.
Target “touch” does not guarantee execution at the exact target price. Spreads and slippage can mean the fill price is worse than the stated TP price, especially during fast moves.
Order management rules can conflict. For example, if there is a separate exit rule (like a stop or time-based close), the remaining portion may not reach later targets.
Assumptions about price path matter. The example assumes TP1 then TP2 then TP3. If price gaps or moves erratically, you might reach later levels without fully benefiting from earlier ones, or you might miss some targets.
Costs can change the net result. The worked example ignores fees/spread; in practice, net profit can be materially lower when execution costs are included.