Scalping is a trading strategy that involves taking advantage of small price movements in the market by executing a large number of trades within a short period of time. There are several techniques that scalpers use to enter and exit trades, including:
Market order: A market order is an order to buy or sell a currency pair at the current market price. Market orders are executed immediately and are often used by scalpers to enter or exit a trade quickly.
Limit order: A limit order is an order to buy or sell a currency pair at a specified price or better. Limit orders are used by scalpers to enter or exit a trade at a specific price level, which can help them avoid slippage.
Stop-loss order: A stop-loss order is an order to close a trade at a predetermined price level in order to limit losses. Scalpers often use tight stop-loss orders to limit their risk on each trade.
Scalpers may also use other techniques such as trailing stops, which allow them to lock in profits as the market moves in their favor, or take-profit orders, which allow them to exit a trade when a certain profit target is reached. Ultimately, the specific techniques used by a scalper will depend on their trading style, risk tolerance, and market conditions.
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